3. Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the text to college and university bookstores for P46 each. а. b. C. d. If the publisher believes that the price per copy could be increased to P50.95 and not affect the anticipated demand of 3,800 copies, what action would you recommend? What profit or loss can be anticipated?
3. Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the text to college and university bookstores for P46 each. а. b. C. d. If the publisher believes that the price per copy could be increased to P50.95 and not affect the anticipated demand of 3,800 copies, what action would you recommend? What profit or loss can be anticipated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for
business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be
P160,000. Variable production and materials costs are estimated to be P6 per book. The publisher plans to sell the
text to college and university bookstores for P46 each.
a.
b.
C.
d. If the publisher believes that the price per copy could be increased to P50.95 and not affect the anticipated
demand of 3,800 copies, what action would you recommend? What profit or loss can be anticipated?
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