Question: 4. Fixed costs are $20,000 per year, variable cost per unit is $10, and selling price per unit is $20. What price must each book

4. Fixed costs are $20,000 per year, variable

4. Fixed costs are $20,000 per year, variable cost per unit is $10, and selling price per unit is $20. What price must each book be sold for to obtain a yearly profit of $20,000. Assuming that an estimated demand is the same amount at the breakeven a. $10 b. $20 c. $30 d. $40 e. None of the above 5. The LEE's Publishing Company intends to publish a textbook in Operations Management. Fixed costs are $20,000 per year, variable costs per unit are $10, and selling price per unit is $12. Give your answers about the following questions. What variable cost per unit would result in $30,000 annual profits if annual sales are 20,000 units? a. $8.00 b. $9.50 c. $9.00 d. $8.50 e. None of the above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!