1.71 1.96 QUESTION 5 Chapter 5, Problem 5 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. The planned sale price of pens is $1 each. If the producer wants to make 30,000 its break even point, it should cut the variable cost to what level? (Please keep 2 digits after the decimal point.) QUESTION 6 Chapter 5, Problem 8 A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. one would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units. For the two internal making plans, at what volume, the cost of these two options will be the same? (If the result is not an integer, please round the result to nearest integer.) QUESTION 7 Chapter S, Problem 8