A pen manufacturer makes luxury pens. The pen case costs $7.26 each, the ink holder costs $1.26 each, the spring costs $.07 each and the velvet pen case costs $0.91 each. The plant has general and administrative costs of $55 000 and fixed selling expenses of $37 500. The pens sell at $39.95 each. Plant capacity is 4 000 pens per period. At what percentage of capacity is the break−evenpoint?

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cost price of one pen 726126007091 95 total cost for one period 550003... View the full answer