The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $ 100,000 Average Variable Cost $ 20 Selling Price $ 30 Determine the breakeven output and total sales revenues.Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level.If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000.Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned.Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.

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Answered: The publishing company is publishing a…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost:

Total fixed cost $ 100,000

Average Variable Cost $ 20

Selling Price $ 30

Determine the breakeven output and total sales revenues.
Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level.
If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000.
Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned.
Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.

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