SmallScale Publishing are considering offering eBooks. Market analysis has been undertaken and the breakdown of sales together

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SmallScale Publishing are considering offering eBooks. Market analysis has been undertaken and the breakdown of sales together with financial information follows. Due to the change in business model, fixed costs are expected to increase to $1 000 000.

Required

(a) Calculate the breakeven in total units.

(b) Compared to your answer in 4.18 above, is the margin of safety higher or lower?

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Management Accounting

ISBN: 9780730369387

4th Edition

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

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Question Posted: Jul 08, 2021 07:40 AM

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SmallScale Publishing are considering offering eBooks. Market analysis has been undertaken and the breakdown of sales together

Question:

New to Business How to Make Yourself a Success Sales (estimated units) Sales price per book Variable cost per book 45 000 15 000 $150 $50 $100 $40

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a New to Business How to Make Yourself a Success Sales 45 000 15 000 Sales price per book 150 100 Le...View the full answer

Management Accounting

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