The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book produced.If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?If the cost of paper rises and increases variable costs to $2.70 each, and the company continues to sell the books for $15, how many books must they sell now to make a profit?If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?

At the breakeven level of production, the firm will be exactly covering its total cost with the…

Answered: The publisher of a new book figures…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book produced.
1. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?
2. If the cost of paper rises and increases variable costs to $2.70 each, and the company continues to sell the books for $15, how many books must they sell now to make a profit?
3. If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?

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