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