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# Profit objective

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For this question what needs to be calculated first?

A company based in TX markets a range of deluxe fountain pens each initially priced at \$25. However, the company is planning a promotion and the price will be reduced to \$17. To promote the special price, an advertising campaign costing \$ 774 is scheduled. The company's fixed cost , not including advertising are \$862 and its variable costs are \$ 4.48 each pen.
Assuming the company wished to maintain its profit objective of \$900,what must be its new target volume in units?

https://brainmass.com/math/geometry-and-topology/determine-target-volume-maintain-profit-objective-182688

#### Solution Preview

Find the total cost and the total revenue at the new promotion price first
Revenue: R = 17x, where x is the number of pens ...

#### Solution Summary

The solution shows how to determine target volume to maintain a profit objective.

\$2.19