A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $64,000, and variable costs (printing, paper, binding, shipping) at $1.10 for each book produced. With this pricing, 4962 books need to be produced and sold at $14.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $1.60 for each book produced. answer a) through to c) a.) What strategies might the company use to deal with this increase in costs? Choose all that are reasonable. A. Increase the selling price of the book. B. Find different suppliers to try and lower the variable costs. C. Decrease the fixed costs. D. Increase the font size of the print in the book. b.) If the company continues to sell books at $14, 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 $1.10 to $1.60, 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 $.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at
for each book produced. With this pricing,
4962
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.
answer a) through to c)
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