1. **State the problem:**
We need to find the break-even quantity and the number of pens to sell to achieve a monthly profit of 15000.
2. **Define variables and formulas:**
Let $x$ be the number of pens sold.
- Selling price per pen = 1
- Fixed cost = 25000
- Variable cost per pen = 0.5
Total cost = Fixed cost + Variable cost per pen \times number of pens = $$25000 + 0.5x$$
Total revenue = Selling price per pen \times number of pens = $$1 \times x = x$$
3. **Break-even quantity:**
Break-even occurs when total revenue equals total cost:
$$x = 25000 + 0.5x$$
Subtract $0.5x$ from both sides:
$$x - 0.5x = 25000$$
$$\cancel{x} - 0.5\cancel{x} = 25000$$
$$0.5x = 25000$$
Divide both sides by 0.5:
$$x = \frac{25000}{0.5}$$
$$x = 50000$$
So, the break-even quantity is 50000 pens.
4. **Quantity for monthly profit of 15000:**
Profit = Revenue - Cost
We want profit = 15000, so:
$$15000 = x - (25000 + 0.5x)$$
Simplify the right side:
$$15000 = x - 25000 - 0.5x$$
$$15000 = 0.5x - 25000$$
Add 25000 to both sides:
$$15000 + 25000 = 0.5x$$
$$40000 = 0.5x$$
Divide both sides by 0.5:
$$x = \frac{40000}{0.5}$$
$$x = 80000$$
So, to obtain a monthly profit of 15000, 80000 pens must be sold.
Break Even Pens 0303Ee
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