You’ve been assigned to analyze the profitability of Bill Clinton’s autobiography. The following assumptions have been made:

Clinton is receiving a one-time royalty payment of $12 million.

The fixed cost of producing the hardcover version of the book is $1 million.

The variable cost of producing each hardcover book is $4.

The publisher’s net from book sales per hardcover unit sold is $15.

The publisher expects to sell 1 million hardcover copies.

The fixed cost of producing the paperback is $100,000.

The variable cost of producing each paperback book is $1.

The publisher’s net from book sales per paperback unit sold is $4.

Paperback sales will be double hardcover sales.

Use this information to determine the following:

How the publisher’s before-tax profit will vary as hardcover sales vary between 100,000 and 1 million copies

How the publisher’s before-tax profit will vary as hardcover sales vary between 100,000 and 1 million copies and the ratio of paperback to hardcover sales varies between 1 and 2.4.