Find the break-even quantity

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Reference no: EM133298232

Case: The selling price for a felt-tip pen is $2 per pen. Fixed cost of the operation is $45,000 per month and variable cost is 50 cents per pen.

a. Find the break-even quantity. (Do not round intermediate calculations. Round the final answer to the nearest whole number.)

Break-even quantity units per month

b. How many pens must be sold to obtain a monthly profit of $20,000? (Do not round intermediate calculations. Round the final answer to the nearest whole number.)

Quantity units per month

c. What is the break-even point in sales dollars? (Do not round intermediate calculations. Round the final answer to the nearest whole number.)

BEP$ per month

d. Another type of marker with the following characteristics can also be produced by the machine: Selling price = $3 each, Variable cost = $0.65 each, and Proportion of revenue = 32%. Calculate the break-even point in sales dollars. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Reference no: EM133298232

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