A retailer wants to sell new pens that in turn are used as bracelets. Each pen costs $400 with the option to return any unsold pens. The permit for the sale costs $150,000. Each pen will be sold for $750. Using the ECUATION and CONTRIBUTION MARGIN methods, determine how many pens must be sold to make neither a loss nor a profit?
A retailer wants to sell new pens that in turn are used as bracelets. Each pen costs $400 with the option to return any unsold pens. The permit for the sale costs $150,000. Each pen will be sold for $750. Using the ECUATION and CONTRIBUTION MARGIN methods, determine how many pens must be sold to make neither a loss nor a profit?
Chapter10: Short-term Decision Making
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COURSE: COSTS AND BUDGETING - BREAK EVEN ANALYSIS
A retailer wants to sell new pens that in turn are used as bracelets. Each pen costs $400 with the option to return any unsold pens. The permit for the sale costs $150,000. Each pen will be sold for $750. Using the ECUATION and CONTRIBUTION MARGIN methods, determine how many pens must be sold to make neither a loss nor a profit?
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