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3 1 pts Bargain Press is considering publishing a new textbook. The publisher has developed the following cost data related to a production run of
3 1 pts Bargain Press is considering publishing a new textbook. The publisher has developed the following cost data related to a production run of 6,000, the minimum possible production run. Bargain Press will sell the textbook for $45 per copy. How many textbooks must Bargain Press sell in order to generate operating earnings (earnings before interest and taxes) of 20% on sales? (Round your answer up to the nearest whole textbook.) Estimated cost Development (reviews, class testing, editing) $ 35,000 Typesetting 18,500 Depreciation on Equipment 9,320 General and Administrative 7,500 Miscellaneous Fixed Costs 4,400 Printing and Binding 30,000 Sales staff commissions (2% of selling price) 5,400 Bookstore commissions (25% of selling price) 67,500 Author's Royalties (10% of selling price) 27,000 Total costs at production of 6,000 copies $204,620
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