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1. The Langley Publishing Company is selling a textbook at $21.00 per copy; total fixed costs are estimated to be $10,000 (design & layout, prepress,
1. The Langley Publishing Company is selling a textbook at $21.00 per copy; total fixed costs are estimated to be $10,000 (design & layout, prepress, setup costs, administrative costs). Variable costs per textbook are: Paper and other material 2.50 Labor cost 5.00 2.00 7.50 Royalty fee Sales commission a. Find the breakeven volume. b. Predict the profit/loss if the sales volume for the academic year is estimated to be 3,000 copies. c. If the fixed cost is reduced to $5,000, what will the new breakeven volume be? d. Calculate the breakeven volume, assuming that the selling price is raised by 10% and at the same time the unit variable cost also goes up by 10% (fixed cost is back to $10,000)
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