The publisher in Problem 59 finds that rising prices for paper increase the variable costs to $2.10

Question:

The publisher in Problem 59 finds that rising prices for paper increase the variable costs to $2.10 per book.

(A) Discuss possible strategies the company might use to deal with this increase in costs.

(B) If the company continues to sell the books for $11, how many books must they sell now to make a profit?

(C) If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?

Data from Problem 59

A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $55,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced. If the book is sold to distributors for $11 each, how many must be produced and sold for the publisher to break even?

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Finite Mathematics For Business Economics Life Sciences And Social Sciences

ISBN: 9780134862620

14th Edition

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

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