Question
1. The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost:
1. The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost Average Variable Cost Selling Price $ 100,000 $ 20 $ 30 a) Determine the breakeven output and total sales revenues. b) Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level. c) If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000. d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.
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