13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixed expenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting $36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstore discounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $ 10 per copy The unit contribution margin for each copy of the book is: The contribution margin ratio for the textbook is: How many books must be sold to break even? The publishing company is currently selling 8,000 copies of the textbook per edition but management feels that sales could be increased by 1,000 books if the selling price per book was reduced by $ 1.00 per copy. If such a policy is implemented how much would the total contribution margin change?
13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixed expenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting $36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstore discounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $ 10 per copy The unit contribution margin for each copy of the book is: The contribution margin ratio for the textbook is: How many books must be sold to break even? The publishing company is currently selling 8,000 copies of the textbook per edition but management feels that sales could be increased by 1,000 books if the selling price per book was reduced by $ 1.00 per copy. If such a policy is implemented how much would the total contribution margin change?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixed
expenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting
$36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstore
discounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $
10 per copy The unit contribution margin for each copy of the book is: The contribution
margin ratio for the textbook is: How many books must be sold to break even? The publishing
company is currently selling 8,000 copies of the textbook per edition but management feels
that sales could be increased by 1,000 books if the selling price per book was reduced by $
1.00 per copy. If such a policy is implemented how much would the total contribution margin
change?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f5cf8a8-dca5-417b-a719-fcea658a7595%2Fb68667fa-5ff4-4535-89d4-1e33577d03d1%2F7hmkpjr_processed.png&w=3840&q=75)
Transcribed Image Text:13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixed
expenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting
$36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstore
discounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $
10 per copy The unit contribution margin for each copy of the book is: The contribution
margin ratio for the textbook is: How many books must be sold to break even? The publishing
company is currently selling 8,000 copies of the textbook per edition but management feels
that sales could be increased by 1,000 books if the selling price per book was reduced by $
1.00 per copy. If such a policy is implemented how much would the total contribution margin
change?
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