Question 1118079: A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 27 cents per pen.
Find the break-even quantity if pens sell for $4 each. (Round your answer to the next whole number.)
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! A producer of felt-tip pens has received a forecast of demand of 41,000 pens for the coming month from its marketing department.
Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 27 cents per pen.
Find the break-even quantity if pens sell for $4 each. (Round your answer to the next whole number.)
:
let q = break-even qty
4q = .27q + 25000
4q - .27q = 25000
3.73q = 250000
q = 25000/3.73
q = 6,203 pens to break even
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