A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $54,000, and variable costs (printing, paper, binding, shipping) at $2.90 for each book produced. With this pricing, 5935 books need to be produced and sold at $12.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $3.40 for each book produced. Use this information 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. O A. Increase the selling price of the book. O B. Find different suppliers to try and lower the variable costs. Oc. Increese the font size of the print in the book. O D. Decrease the fixed costs. b. If the company continues to sell books at $12, how many books must they now sell to make a profit? The publisher must produce and sell at least (Round up to the nearest whole book.) books to make a profit. c. If the company wants to start making a profit at the same production level as before the cost increase from $2.90 to $3.40, how much should the publisher sell the book for now? In order for the company to start making a profit at the same production level as before, the publisher should sell the book for more than the break even point, which is approximately $ (Round to the nearest cent as needed.)
A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $54,000, and variable costs (printing, paper, binding, shipping) at $2.90 for each book produced. With this pricing, 5935 books need to be produced and sold at $12.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $3.40 for each book produced. Use this information 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. O A. Increase the selling price of the book. O B. Find different suppliers to try and lower the variable costs. Oc. Increese the font size of the print in the book. O D. Decrease the fixed costs. b. If the company continues to sell books at $12, how many books must they now sell to make a profit? The publisher must produce and sell at least (Round up to the nearest whole book.) books to make a profit. c. If the company wants to start making a profit at the same production level as before the cost increase from $2.90 to $3.40, how much should the publisher sell the book for now? In order for the company to start making a profit at the same production level as before, the publisher should sell the book for more than the break even point, which is approximately $ (Round to the nearest cent as needed.)
Chapter7: Systems Of Equations And Inequalities
Section7.2: Systems Of Linear Equations: Three Variables
Problem 61SE: Last year, at Haven's Pond Car Dealership, for a particular model of BMW, Jeep, and Toyota, one...
Related questions
Topic Video
Question
Transcribed Image Text:A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $54,000, and variable costs (printing, paper, binding, shipping) at $2.90 for each book produced. With this pricing,
5935 books need to be produced and sold at $12.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $3.40 for each book produced.
Use this infomation 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.
O A. Increase the selling price of the book
O B. Find different suppliers to try and lower the variable costs.
O C. Increese the font size of the print in the book.
O D. Decrease the fixed costs.
b. If the company continues to sell books at $12, 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 $2.90 to $3.40, how much should the publisher sell the book for now?
In order for the company to start making a profit at the same production level as before, the publisher should sell the book for more than the break even point, which is approximately $
(Round to the nearest cent as needed.)
Click to select your answer(s).
MacBook Air
<1
44
F9
F5
F6
F7
F2
F4
@ €
2$
&
*
# 3
4.
2
3
5
6
7
8
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.Recommended textbooks for you
Elementary Geometry For College Students, 7e
Geometry
ISBN:
9781337614085
Author:
Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:
Cengage,
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781337278461
Author:
Ron Larson
Publisher:
Cengage Learning
Elementary Geometry For College Students, 7e
Geometry
ISBN:
9781337614085
Author:
Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:
Cengage,
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781337278461
Author:
Ron Larson
Publisher:
Cengage Learning
