The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs:

Total fixed costs:

Copy editing.................................................................................................................... $10,000

Typesetting........................................................................................................................ 70,000

Selling and Promotion..................................................................................................... 20,000

Total fixed costs........................................................................................................... $100,000

Average variable costs:

Printing and binding............................................................................................................... $6

Administrative costs................................................................................................................. 2

Sales commission..................................................................................................................... 1

Bookstore discounts................................................................................................................ 7

Author's royalties..................................................................................................................... 4

Average variable costs......................................................................................................... $20

Project selling price.............................................................................................................. $30

(a). Determine the break even output and total sales revenues.

(b). Determine the output that would generate a total profit of $60,000 and the total sales revenues at that output level.