Answer:
a) Profit = 84000
b) at break even number of pens sold = 46
Step-by-step explanation:
Profit = Selling price - Cost price
Total revenue generated = 99 * 1000
Total revenue generated = 99000
Total cost on making the pen = 11 * 1000
Total cost on making the pen = 11000
Total cost including the initial cost = 11000 + 4000
Total cost including the initial cost = 15000
Profit = 99000 - 15000
Profit = 84000
Break even is when the cost are equal to Revenue thus no profit or loss
Revenue = total cost (break even)
9x = 1x + 4000
9x - x = 4000
8x = 4000
x = 500
At breakeven Revenue = 9 * 500
At breakeven Revenue = 4500
since one pen is sold at 99 therefore at break even number of pens sold = 4500/99 = 45.45( to 2 decimal place)
at break even number of pens sold = 46
