A book publisher has i xed costs of $300,000 and variable costs per book of $8.00. Thebook sells for $23.00 per copy.a. How many books must be sold to break even?b. If the i xed cost increased, would the new break-even point be higher or lower?c. If the variable cost per unit decreased, would the new break-even point be higher or lower?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
| A book publisher has i xed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. a. How many books must be sold to break even? b. If the i xed cost increased, would the new break-even point be higher or lower? c. If the variable cost per unit decreased, would the new break-even point be higher or lower? |
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Afif had a fund of RM55,000 and planned to invest his money in two different schemes. He invested 60% of his money in scheme A which pays 9% compounded quarterly. The balance was invested in Scheme B which pays k% compounded semi-annually. After 8 years, the accumulated amount for both of his investments was RM113,000. Find k.
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