SmallScale Publishing has now been operating for a couple of years. Sales have been growing and management have been excited about business performance. Currently the business sells two very popular books that are gaining international recognition; ‘New to Business’, and ‘How to Make Yourself a Success’. Next year, the estimated total sales are 60 000 books and the breakdown per title together with financial information follows:

Total fixed costs are expected to be $500 000. Pdf_Folio:126

Required

(a) Calculate the total number of books to be sold to break even next year. Show the number of books for each title.

(b) Calculate the estimated profit for next year.

Transcribed Image Text:

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 $100 $100 $80