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A producer of felt-tip pens has received a forecast of demand of 31,000 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 40 cents per pen.
a.Find the break-even quantity if pens sell for $2 each. (Round your answer to the next whole number.)
b.At what price must pens be sold to obtain a monthly profit of $23,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
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