Managerial Accounting
Managerial Accounting
1st Edition
ISBN: 9780137024872
Author: Datar, Srikant M./
Publisher: Pearson College Div
Question
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Chapter 3, Problem 15E

1.

To determine

Prepare PV graph for SD publishing.

2a.

To determine

Identify the number of copies SD Publishing has to sell to break-even.

2b.

To determine

Identify the number of copies SD Publishing has to sell to earn a target operating income of $850,000.

3a.

To determine

Determine the break-even point, if increasing the royalty rate to 12% of the net sales price.

3b.

To determine

Determine the break-even point, if increasing the bookstore price to $40 by royalty rate at 10%.

3c.

To determine

Comment on the results and specify the option that is chose. Give reason.

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