1.1

The following data relate to a popular novel sold by a publisher: Fixed Costs:

Copy Editing $6005

Artwork $2312

Typesetting $72007

Variable Costs per copy:

Printing and Binding $3.02

Bookstore Discounts $4.10

Sales Commissions $0.60

Authors Royalties $2.36 Each novel copy sells for $24. The company sold 10800 copies in July.

Required: If the publisher desires a $21059 After-tax Profit, how many novel copies the publisher must sell? Assume the tax rate is 0.31%.