Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $45,000. The printing costs are a flat $9,000 for setup plus $5.00 per book. The author's royalty is 6% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $10,170. a. If the price to bookstores is set at $35, how many books must be sold to break even? (Round the answer up to the nearest whole number.) Number of books b. The marketing department is forecasting sales of 5,200 books at the $35 price. What will be the net income from the project at this volume of sales? Net income books $
Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $45,000. The printing costs are a flat $9,000 for setup plus $5.00 per book. The author's royalty is 6% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $10,170. a. If the price to bookstores is set at $35, how many books must be sold to break even? (Round the answer up to the nearest whole number.) Number of books b. The marketing department is forecasting sales of 5,200 books at the $35 price. What will be the net income from the project at this volume of sales? Net income books $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
Transcribed Image Text:Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated
at $45,000. The printing costs are a flat $9,000 for setup plus $5.00 per book. The author's royalty is 6% of the publisher's
selling price to bookstores. Advertising and promotion costs are budgeted at $10,170.
a. If the price to bookstores is set at $35, how many books must be sold to break even? (Round the answer up to the
nearest whole number.)
Number of books
books
b. The marketing department is forecasting sales of 5,200 books at the $35 price. What will be the net income from the
project at this volume of sales?
Net income
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