Company have to charge for every set

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Reference no: EM1311990

Q. Writers' Pleasure, Inc. produces gold-plated pen also pencil sets. It has a fixed annual cost of $50,000 also the average variable cost is $20. It expects to sell 5,000 sets next year.

a. In order to just break even, Elucidate how much will the company have to charge for every set?

b. Based on its plant investment, the company requires an annual profit of $30,000. Elucidate how much will it have to charge every set to attain this profit? Quantity sold will still be 5,000 sets.

c. If the company wants to earn a markup of 50 percent on its variable costs, Elucidate how many sets will it have to sell at the price obtained in part b?

Reference no: EM1311990

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