2. You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital versions. The paper version costs you $250 and you can sell it for $300. The digital version costs you $100 and you can sell it for $125. Last semester you sold 12 paper versions and 120 digital versions for total sales of $18,600. You expect that sales mix will continue this semester. ● ● If your semester fixed costs are $3,000 for a publisher's license, what dollar amount of sales will you need to breakeven? How many paper and digital books will you have to sell to breakeven? How much operating income did you have last semester?
2. You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital versions. The paper version costs you $250 and you can sell it for $300. The digital version costs you $100 and you can sell it for $125. Last semester you sold 12 paper versions and 120 digital versions for total sales of $18,600. You expect that sales mix will continue this semester. ● ● If your semester fixed costs are $3,000 for a publisher's license, what dollar amount of sales will you need to breakeven? How many paper and digital books will you have to sell to breakeven? How much operating income did you have last semester?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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vi.2
Transcribed Image Text:2. You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital
versions. The paper version costs you $250 and you can sell it for $300. The digital version costs
you $100 and you can sell it for $125.
Last semester you sold 12 paper versions and 120 digital versions for total sales of $18,600. You
expect that sales mix will continue this semester.
●
If y
f your semester fixed costs are $3,000 for a publisher's license, what dollar amount of
sales will you need to breakeven?
How many paper and digital books will you have to sell to breakeven?
How much operating income did you have last semester?
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