The publisher, Mark Twain Press, feels it has problems. The CEO, Charles Dickens, has instigated an analysis of costs. Here are the details of its cult classic, A Voyage to Arcturus.

• A Voyage to Arcturus has fixed costs of $400,000
• A Voyage to Arcturus has variable variable costs per book of $11.00
• The book, A Voyage to Arcturus, sells for $27.00 per copy

a. To reach breakeven, how many copies of A Voyage to Arcturus must be sold? (Roundup your answer to the next whole number.)

b. If the fixed costs for the Mark Twain Press increased, would the new break-even point be higher or lower?

multiple choice 1

• Higher

• Lower

• It would remain the same

• There is insufficient information to answer this question

c. If the Mark Twain Press could decrease the variable cost for each copy of AVoyage to Arcturus, would the new break-even point be higher or lower?

multiple choice 2

• Higher

• Lower

• It would remain the same

• There is insufficient information to answer this question