Operations management question.
A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 37 cents per pen.
a. Find the break-even quantity if pens sell for $1 each. (Round your answer to the next whole number.)
b. At what price must pens be sold to obtain a monthly profit of $15,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places.