A producer of staplers has received a forecasted demand of

Reference no: EM13618394

A producer of staplers has received a forecasted demand of 10,000 staplers for the coming month. Fixed costs are $11,545 per month, and the staplers cost $2.95 to produce each. Answer the following questions.

a) Find the break-even point if the staplers sell for $5 each.

b) Suppose that you wish to attain a profit of $12,000 next month. What is the minimum price that you should sell the staplers at in order to attain this profit? Hint: This problem as nothing to do with part (a).

c) If demand changes to 9,000 staplers, should we still sell each stapler at the price found in (b)? Explain.

Reference no: EM13618394

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