A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the comingmonth from its marketing department. Fixed costs of $25,000 per month are allocated to the felttip operation, and variable costs are 37 cents per pen.a. Find the break-even quantity if pens sell for $1 each
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A producer of felt-tip pens has received a
month from its marketing department. Fixed costs of $25,000 per month are allocated to the felttip operation, and variable costs are 37 cents per pen.
a. Find the break-even quantity if pens sell for $1 each
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- Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the total rooms rented for the year). Tim's cost to clean a room is $12.50.The Duffy's Maid Service quote is $18.00 per room plus a fixed cost of $26,000for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $65,000. Part 2 Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number). Part 3 If the number of room nights is less than the crossover point, then is the best option available to Tim.A producer of felt-tip pens has received a forecast of demand of 32000 pens for the coming month from its marketing department. Fixed costs of $36000 per month are allocated to the felt-tip operation, and variable costs are 39 cents per pen. a. Find the break-even quantity if pens sell at $3 each. b. At what price must pens be sold to obtain a monthly profit of $19,000, assuming that estimated demand materializes?A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the comingmonth from its marketing department. Fixed costs of $25,000 per month are allocated to the felttip operation, and variable costs are 37 cents per pen. b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes?
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