The publisher, Mark Twain Press, feels it has problems. The CEO, Charles Dickens, has instigated an analysis of costs. Here are the details of its cult classic, A Voyage to Arcturus. • A Voyage to Arcturus has fixed costs of $380,000 • A Voyage to Arcturus has variable variable costs per book of $9.00 • The book, A Voyage to Arcturus, sells for $23.00 per copy a. To reach breakeven, how many copies of A Voyage to Arcturus must be sold? (Roundup your answer to the next whole number.) Books to be sold
The publisher, Mark Twain Press, feels it has problems. The CEO, Charles Dickens, has instigated an analysis of costs. Here are the details of its cult classic, A Voyage to Arcturus. • A Voyage to Arcturus has fixed costs of $380,000 • A Voyage to Arcturus has variable variable costs per book of $9.00 • The book, A Voyage to Arcturus, sells for $23.00 per copy a. To reach breakeven, how many copies of A Voyage to Arcturus must be sold? (Roundup your answer to the next whole number.) Books to be sold
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question

Transcribed Image Text:b. If the fixed costs for the Mark Twain Press increased, would the new break-even point be higher or lower?
O Higher
O Lower
O It would remain the same
O There is insufficient information to answer this question
c. If the Mark Twain Press could decrease the variable cost for each copy of AVoyage to Arcturus, would the new break-even point be
higher or lower?
O Higher
O Lower
O It would remain the same
O There is insufficient information to answer this question

Transcribed Image Text:The publisher, Mark Twain Press, feels it has problems. The CEO, Charles Dickens, has instigated an analysis of costs. Here are the
details of its cult classic, A Voyage to Arcturus.
• A Voyage to Arcturus has fixed costs of $380,000
• A Voyage to Arcturus has variable variable costs per book of $9.00
• The book, A Voyage to Arcturus, sells for $23.00 per copy
a. To reach breakeven, how many copies of A Voyage to Arcturus must be sold? (Roundup your answer to the next whole number.)
Books to be sold
Expert Solution

Step 1
Given data
Fixed costs of a Voyage to Arcturus is $380000
Variable costs per book of a Voyage to Arcturus is $9.00
The selling price of the book from a Voyage to Arcturus is $23 per copy
Step by step
Solved in 2 steps

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