Aproducer of felt-tip pens has received a forecast of demand of 31,000 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 40 cents per pen. (a) find the break-even quantity if pens sell for $2 each. (round your answer to the next whole number.) (b) at what price must pens be sold to obtain a monthly profit of $23,000, assuming that estimated demand materialized

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?