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1. Eastman Publishing Company is considering publishing a paperback textbook on spread- sheet applications for business. The fixed cost of manuscript preparation, textbook design, and
1. Eastman Publishing Company is considering publishing a paperback textbook on spread- sheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $160,000. Variable production and material costs are estimated to be $6 per book. The publisher plans to sell the text to college and university bookstores for $46 each. (A) How many books must Eastman sell to break even? (B) What is the break-even dollar amount? (C) If Eastman sells 3,800 books, what will be the contribution to profit? (D) How many books must Eastman sell to realize a profit of $8,000 ? (E) If the profit target is $8,000, and only 3,500 books can be sold, what price should be charged per book in order to achieve that goal
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