M1 Ind2 A Start Up Publishing Company Estimates That The Fixed Costs Of Its Firs

M1_IND2. A start-up publishing company estimates that the fixed costs of its first major project will be $175,000, the variable cost will be $20 per book, and the selling price per book will be $28.

 a) How many books must be sold to break even?

b) What is the total revenue at the break-even point?

c) If the publishers take a total of $60,000 in salary (what cost is affected?) – how many books must be sold to break even?

d) What is the total revenue for the break-even volume when the publishers take a total of $60,000 in salary?

 
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