A producer of felt-tip pens has received a forecast of demand of 33,000 pens for the coming month from its marketing department. Fixed costs of $27,000 per month are allocated to the felt-tip operation, and variable costs are 25 cents per pen
a. Find the break-even quantity if pens sell for $2 each. (Round your answer to the next whole number) QBEP units
b. At what price must pens be sold to obtain a monthly profit of $11,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $