A publisher for a promising new novel figures fixed costs​ (overhead, advances,​ promotion, copy​ editing, typesetting, and so​ on) at ​$64,000​,   and variable costs​ (printing, paper,​ binding, shipping) at ​$1.10 for each book produced. With this​ pricing,  4962  books need to be produced and sold at $14.00 each for the publisher to break even. ​ However, rising prices for paper require an increase in variable costs to ​$1.60 for each book produced. answer a) through to c) a.)  What strategies might the company use to deal with this increase in​ costs? Choose all that are reasonable.     A. Increase the selling price of the book.   B. Find different suppliers to try and lower the variable costs.   C. Decrease the fixed costs.   D. Increase the font size of the print in the book.   b.)  If the company continues to sell books at ​$14​, how many books must they now sell to make a​ profit?   The publisher must produce and sell at least   books to make a profit. ​(Round up to the nearest whole​ book.)   c.)  If the company wants to start making a profit at the same production level as before the cost increase from ​$1.10 to ​$1.60​, how much should the publisher sell the book for​ now?   In order for the company to start making a profit at the same production level as​ before, the publisher should sell the book for more than the break even​ point, which is approximately ​$.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.2: Exponential Functions
Problem 72E
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A publisher for a promising new novel figures fixed costs​ (overhead, advances,​ promotion, copy​ editing, typesetting, and so​ on) at

​$64,000​,
 
and variable costs​ (printing, paper,​ binding, shipping) at
​$1.10

for each book produced. With this​ pricing, 

4962 

books need to be produced and sold at

$14.00

each for the publisher to break even. ​ However, rising prices for paper require an increase in variable costs to

​$1.60

for each book produced.

answer a) through to c)

a.)  What strategies might the company use to deal with this increase in​ costs? Choose all that are reasonable.
 
 
A.
Increase the selling price of the book.
 
B.
Find different suppliers to try and lower the variable costs.
 
C.
Decrease the fixed costs.
 
D.
Increase the font size of the print in the book.
 
b.)  If the company continues to sell books at
​$14​,
how many books must they now sell to make a​ profit?
 
The publisher must produce and sell at least
 
books to make a profit.
​(Round up to the nearest whole​ book.)
 
c.)  If the company wants to start making a profit at the same production level as before the cost increase from
​$1.10
to
​$1.60​,
how much should the publisher sell the book for​ now?
 
In order for the company to start making a profit at the same production level as​ before, the publisher should sell the book for more than the break even​ point, which is approximately
​$.
​(Round to the nearest cent as​ needed.)
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