Question: The fixed cost is $240,000. Variable costs are $10 per book. Demand is estimated to be 6000 copies. The publisher plans to sell the book

The fixed cost is $240,000. Variable costs are $10 per book. Demand is estimated to be 6000 copies. The publisher plans to sell the book for $58 each. With a demand of 6,000 copies,

what is the minimum price per copy the publisher must charge to break even?

Step by Step Solution

★★★★★

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To break even the total revenue should be equal to ... View full answer

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 Accounting Questions!

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The...

Sorry for posting in the area.... Her is what I have. Thanks. For each of the following activities, select the most appropriate cost driver. Each cost driver may be used only once. Activity 1. Pay...

Eastman Publishing Co. is considering publishing a paperback textbook. The fixed cost of setup is estimated to be $80,000. Variable production costs are estimated to be $2 per book. Demand over the...

Can you please explain how to solve this equation? 4) Eastman Publishing Co. is considering publishing a paperback textbook. The fixed cost of setup is estimated to be $80,000. Variable production...

Eastman Publishing Co. is considering publishing a paperback textbook. The fixed cost of setup is estimated to be $80,000. Variable production costs are estimated to be $3 per book. Demand over the...

Beta Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. Data: The fixed cost of manuscript preparation, textbook design, and production setup...

Could you please help me for question 5... It is to do with Australian accounting standards UNIT CODE: ACT503 UNIT NAME: CORPORATE ACCOUNTING Assignment Information Semester Two 2017 Assessment 30%...

Suppose you standardize a Na2S2O3 solution by dissolving 570 ng of KIO3 in acid and allow it to react with excess KI. The triiodide produced is then titrated with Na2S2O3 solution, requiring 17.00 mL...

What are some of the major criticisms of advertising? What is corrective advertising? What is puffery?

Find equations of the line that is parallel to the z - axis and passes through the midpoint between the two points ( 0 , 4 , 5 ) and ( 8 , 5 , 7 ) . ( Enter your answers as a comma - separated list...

Earnhart Manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must...

The ideal analog differentiator is described by Y a (t) = dx a (t)/dt Where x a (t) is the input and y a (t) the output signal. (a) Determine its frequency response by exciting the system with the...

Barry, a recent engineering graduate, never took engineering economics. When he graduated, he was hired by a prominent architectural firm. The earnings from this job allowed him to deposit $750 each...

Laminar slit flow with a moving wall ("plane Couette flow") Extend Problem 2B.3 by allowing the wall at x = B to move in the positive z direction at a steady speed v0. Obtain (a) The shear-stress...

Wendy Dwyer established Outlaw Computer Services on January 1, 2011. The effect of each transaction and the balances after each transaction for January are shown below in the integrated financial...

New to the world products are: products that create entirely new markets, products already existing but improved, additions to products lines or repositioned products.

You have the following unadjusted trial balance for Rogers Corporation at December 31, 2011: At year-end, you have the following data for adjustments: a. An analysis indicates that prepaid rent on...

Consolidated financial statements for Initech Corporation follow. Initech Corporation Consolidated Balance Sheets (In millions except per share amounts) LIABILITIES AND STOCKHOLDERS EQUITY Required:...

Assume that you are a trust officer for the Wu Bank. You are attempting to select a pharmaceutical manufacturers stock for a clients portfolio. You have secured the following data: Required:...

=+a. A least squares fit of y 5 a 1 b1x1 1 b2x2 to this data gave a 5 .0558, b1 5 .3749, and b2 5 .0028. What value of deposition rate would you predict when wire feed rate 5 11.5 and welding speed 5...

=+35. Recently there has been increased use of stainless steel claddings in industrial settings. Claddings are used to finish the exterior walls of a building and help weatherproof the structure. To...

=+Stainless Steel Claddings Deposited by FCAW (J. Mater. Engr. Perform., 2012: 18621872) investigated how y 5 deposition rate was influenced by x1 5 wire feed rate (Wf , in m/min) and x2 5 welding...