Question: will rate Straight Lines Pen & Ink Contribution Margin & Cost-Profit Volume Analysis Straight Lines Pen & Ink Company produces ink pens. The pens only

Straight Lines Pen \& Ink Contribution Margin \& Cost-Profit Volume Analysis Straight Lines Pen \& Ink Company produces ink pens. The pens only come in one style and one color -- Black Tubular pens. The company produces 400,000 pens a month, but the relevant range for producing the product is 300,000 to 500,000 . The company's pens are sold for $0.75 a piece to local retailers. Immediately below is a summary of the costs of producing the pens. 7. Assuming they sell 400,000 pens a month, what is the minimum amount they can sell the pens for to break even? 8. How much profit do they make if they make and sell 300,000 pens a month? 500,000 pens a month? Assume a 75 cent selling price. 9. How much do they need to raise the price of pens, if they want to make $75,000 profit a month? (Assume they are selling 400,000 pens)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
