Nancys novelty notebooks has forecast next years demand to, Ask an Expert

Management Studies

Nancy's Novelty Notebooks has forecast next year's demand to be 36,000. The notebooks are considered to incur annual fixed costs of $26,000 and per-unit variable costs of 31 cents.

a. If notebooks can be sold for $1 each, what is the break-even quantity?. (Round your answer to the next whole number.)

QBEP ___________units

b. If we assume that the forecast is correct, what should be the per-unit price of notebooks, if the company seeks to earn an annual profit of $17,000? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price $___________

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92504562

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