The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it


Question:

The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs:

Total fixed Costs:
Copy editing $10,000
Type setting 70,000
Selling and promotion 20,000
Total fixed Costs $100,000
Average variable costs:
Printing and binding $ 6
Administrative costs 2
Sales commissions 1
Bookstore discounts 7
Author’s royalties 4
Average variable costs $ 20
Project selling price $ 30

(a) Determine the breakeven output and total sales revenues and draw the cost-volume-profit chart, and (b) determine the output that would generate a total profit of $60,000 and the total sales revenues at that output level; draw the cost-volume-profit chart.

*** special instructions: You do not need to draw the cost-volume-profit charts.



Price: $2.99
Solution: The answer consists of 2 pages
Deliverables: Word Document

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