13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixedexpenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting$36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstorediscounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $10 per copy The unit contribution margin for each copy of the book is: The contributionmargin ratio for the textbook is: How many books must be sold to break even? The publishingcompany is currently selling 8,000 copies of the textbook per edition but management feelsthat sales could be increased by 1,000 books if the selling price per book was reduced by $1.00 per copy. If such a policy is implemented how much would the total contribution marginchange?

The unit contribution margin is calculated by subtracting the variable cost per unit from the…

Answered: 13. The costs of publishing a grade…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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