B. Incorrect Problem 5-5 (Algo)A producer of felt-tip pens has received a forecast ofdemand of 41,000 pens for the coming month from itsmarketing department. Fixed costs of $26,000 per monthare allocated to the felt-tip operation, and variable costsare 35 cents per pen.a. Find the break-even quantity if pens sell for $1 each.(Round your answer to the next whole number.)QBEP40,000 unitsb. At what price must pens be sold to obtain a monthlyprofit of $16,000, assuming that estimated demandmaterializes? (Round your answer to 2 decimal places.)Price

Break-even quantity (BEQ) is a statistical tool that helps to identify the minimum required unit to…

Answered: b. At what price must pens be sold to…

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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b. At what price must pens be sold to obtain a monthly profit of $16,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places.) Price