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
Deliverables: Word Document