Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. A producer of pencils has received a forecast of demand of 30,000 pencils for the coming month.Fixed cost of $25,000 per month are allocated to the operation and variable costs are $0.37 perpencil.a) Find the break even quantity if pencils sell for $1 eachb) At what price must pencils be sold to obtain a monthly profit of $15,000, assuming thatestimated demand materializes?

A break-even point is a level wherein there is neither profit nor loss. At this point of output, the…

Answered: a) Find the break even quantity if…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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a) Find the break even quantity if pencils sell for $1 each b) At what price must pencils be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes?