Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14. Breakeven point-Changing costs/revenues JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $10.55 with variable operating cost per book of

image text in transcribed
14. Breakeven point-Changing costs/revenues JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $10.55 with variable operating cost per book of $7.57 and fixed operating costs of $41,000. a. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if all figures remain the same as for last year? b. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if fixed operating costs increase to $44,800 and all other figures remain the same? c. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the selling price increases to $11.06 and all costs remain the same as for last year? d. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the variable operating cost per book increases to $8.08 and all other figures remain the same? e. What conclusions about the operating breakeven point can be drawn from your answers? a. The breakeven point will be books. (Round to the nearest integer.) b. The breakeven point will be books. (Round to the nearest integer.) c. The breakeven point will be books. (Round to the nearest integer.) d. The breakeven point will be books. (Round to the nearest integer.) e. What conclusions about the operating breakeven point can be drawn from your answers? (Select the best answer below.) OA. There is no direct relationship between cost, price and operating breakeven point. B. Increases in costs and price raise the operating breakeven point. O C. Increases in costs lower the operating breakeven point, while increases in price decrease it. O D. Increases in costs raise the operating breakeven point, while increases in price lower it

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Corporate Valuation Fundamental Analysis, Asset Pricing, And Company Valuation

Authors: Pasquale De Luca

1st Edition

331993550X, 9783319935508

More Books

Students also viewed these Accounting questions

Question

14.5 Describe how accidents at work can be prevented.

Answered: 1 week ago