Management wants to generate 13500 in profits next month, Operation Management

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Management wants to generate 13500 in profits next month

Question: A felt-tip pen manufacturer is forecasted to sell 33000 pens next month. Their fixed costs are $27400 per month and variable costs are $0.40 per pen.

Management wants to generate $13500 in profits next month. Assuming that the demand is met, what must the selling price be?

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Operation Management: Management wants to generate 13500 in profits next month

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Operation Management: Management wants to generate 13500 in profits next month

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