=+4-23 KK CVP analysis, sensitivity analysis OBJECTIVES 1, 2, 4, 5 Kevin Fraser is the newly elected leader of the United Party. Media Publishers is negotiating to publish Fraser’s Manifesto, a new book that promises to be an instant best seller. The fixed costs of producing and marketing the book will be $500000. The variable costs of producing and marketing will be $4.00 per copy sold. These costs are before any payments to Kevin Fraser. Fraser negotiates an up-front payment of $3 million, plus a 15% royalty rate on the net sales price of each book. The net sales price is the listed bookstore price of $30, minus the margin paid to the bookstore to sell the book. The normal bookstore margin of 30% of the listed bookstore price is expected to apply.

Required 1 Prepare a PV graph for Media Publishers.