Question: point ( s ) possible A publisher for a promising new novel figures fixed costs ( overhead , advances, promotion, copy editing, typesetting, and so
points possible
A publisher for a promising new novel figures fixed costs overhead advances, promotion, copy editing, typesetting, and so on at $ and variable costs printing paper, binding, shipping at $ for each book produced. With this pricing, books need to be produced and sold at $ each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $ for each book produced.
Use this informcion to complete parts a through c
a What strategies might the company use to deal with this increase in costs? Choose all that are reasonable.
A Decrease the fixed costs.
B Find different suppliers to try and lower the variable costs.
C Increase the font size of the print in the book.
D Increase the selling price of the book.
b If the company continues to sell books at $ how many books must they now sell to make a profit?
The publisher must produce and sell at least books to make a profit.
Round up to the nearest whole book.
c If the company wants to start making a profit at the same production level as before the cost increase from $ to $ how much should the publisher sell the book for now?
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