A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $61,000, and variable costs (printing, paper, binding, shipping) at $2.50 for each book produced. If the book is sold to distributors for $16 each, how many must be produced and sold for the publisher to break even? The publisher must produce and sell enter your response here books to break even.

A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $61,000, and variable costs (printing, paper, binding, shipping) at $2.50 for each book produced. If the book is sold to distributors for $16 each, how many must be produced and sold for the publisher to break even? The publisher must produce and sell enter your response here books to break even.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and website construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit can be anticipated with a demand of 3500 copies? b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of profit to demand. c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook with this value displayed or else you will not receive credit.
Provide a formula in the solution. Thank you! ABC Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be P100,000. Variable production and material costs are estimated to be P150 per book. Demand over the life of the book is estimated to be 4,000 copies. The publisher plans to sell the text to college and university bookstores for P1,000 each. 1. What profit or loss can be anticipated with a demand of 4000copies?2. With a demand of 4000 copies, what is the minimum price percopy that the publisher must charge to break even?3. If the publisher believes that the price per copy could beincreased to P1,297.50 and would not affect the anticipateddemand of 4000 copies, what action would you recommend?4. What profit or loss can be anticipated
D's is considering publishing a paperback textbook onspreadsheet applications for business. The fixed cost of manuscriptpreparation, textbook design, and production setup is estimated to beP100,000. Variable production and material costs are estimated to be P150 perbook. Demand over the life of the book is estimated to be 4000 copies. Thepublisher plans to sell the text to college and university bookstores for P1000each. e. What profit or loss can be anticipated with a demand of 4000 copies? f. With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even? g. If the publisher believes that the price per copy could be increased to P1, 297. 50 and would not affect the anticipated demand of 4000 copies, what action would you recommend? h. What profit or loss can be anticipated?
Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet application for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material cost are estimated to be $3 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstore for $20 each. Required: a). What is the breakeven point? b). What profit or loss can be anticipated with a demand of 4000 copies? c). With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to breakeven? d) If the publisher believes that the price per copy could be increased to $25.95and not affect the anticipated demand of 4000 copies, what action would you recommend? What profit or loss can be anticipated?
A national newspaper publishing group is considering introducing a new morning newspaper in Denver. Its direct competitor charges $0.75 per copy at retail, with $0.15 going to the retailer. For the level of news coverage the company desires, the fixed cost of editors, reporters, rent, press-room expenses, and wire-service charges are determined to be $300,000 per month. The variable cost of ink and paper is $0.20 per copy, but advertising revenues of $0.10 per paper will be generated. To print the morning paper, the publisher has to purchase a new printing press, which will cost $600,000. TI1e press machine will be depreciated according to the method for the seven-year MACRS class. The press machine will be used for 10 years, at which time its salvage value will be about $100,000. Assume 25 weekdays of printing in a month, a 40% tax rate, and a 12% MARR.How many copies per day must be sold at a selling price of $0.50 per copy at retail in order for the publishing group to break even?
Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $162,000. Variable processing costs are estimated to be $6.89 per book. Use Goal Seek to determine the access price per copy (in dollars) that the publisher must charge to earn a profit of $100,000 with a demand of 31,000 copies.
1.Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $60,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 3800 copies. The publisher plans to sell the text to college and university bookstores for $18 each. What is the breakeven point? What profit or loss can be anticipated with a demand of 3800 copies? With a demand of 3800 copies, what is the minimum price per copy that the publisher must charge to break even?
SHOW YOUR SOLUTION IN GOOD ACCOUNTING FORM. THANK YOU A company sells its product at P30 per unit.Unit variable cost is P22 and total fixed coststotal to P100,000 per month. The companycurrently pays salaries of P40,000 per monthbut with no commission. It is considering acompensation plan whereby the salespeoplewould receive 5% commission based onsales, but their salaries would be decreasedto P25,000 per month. At what sales level isthe company indifferent between the twocompensation plans?
Alfa publishing publishes cookbooks that sell for $50 each. The variable cost per book is $15. At the current level of sales of 20,000 books per issue, the publisher is breaking even. Assume that if copyright is reduced by $3.00 so that variable costs drop to $12 per book and they can be sold for $47, sales should increase from 20,000 to 24,000 books per issue. Under these new conditions, what should the publisher's profit be? a) $120,000.00 b) $130,000.00 c) $160,000.00 d) $140,000.00
Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores for $20 each. Q) If the publisher believes that the price per copy could be increased to $25.95 and not affect the anticipated demand of 4000 copies, what action would you recommend? What profit or loss can be anticipated?
Miller Books is considering publishing a book about meditation. The fixed costs to publish the book is estimated at $160,000. Variable material costs are estimated at $6 per book. Demand over the life of the textbook is estimated at 4,000 copies. Miller books anticipates that they can sell the books for $46 per unit. a) Write an expression for total revenue b) Write an expression for total cost c) Write an expression for total profit d) Find the break-even point e) Recommend a strategy if Miller will not be able to sell more than 3,500 copies.
Eastman Publishing Company is considering publishing a paperbadk textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $160,000. Variable production and material costs are estimated to be $6 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans on selling the text to college and university bookstores for $46 each. a. What is the breakeven point?