D's 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 P100,000. Variable production and material costs are estimated to be P150 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores for P1000 each. e. What profit or loss can be anticipated with a demand of 4000 copies? f. With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even? g. If the publisher believes that the price per copy could be increased to P1, 297. 50 and would not affect the anticipated demand of 4000 copies, what action would you recommend?
D's 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
P100,000. Variable production and material costs are estimated to be P150 per
book. Demand over the life of the book is estimated to be 4000 copies. The
publisher plans to sell the text to college and university bookstores for P1000
each.
e. What profit or loss can be anticipated with a demand of 4000 copies?
f. With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even?
g. If the publisher believes that the price per copy could be increased to P1, 297. 50 and would not affect the anticipated demand of 4000 copies, what action would you recommend?
h. What profit or loss can be anticipated?
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