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30 The world-famous discounter, Fernwood Booksellers, specializes in selling paperbacks for $) each. The variable cost per book is $5 M current annual sales of
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The world-famous discounter, Fernwood Booksellers, specializes in selling paperbacks for $) each. The variable cost per book is $5 M current annual sales of 200,000 books, the publisher is just breaking even. It is estimated that if the authors' royalties are reduced, the variable cost per book will drop by $1. Assume authors' royalties are reduced and sales remain constant; how much more money can the publisher put into advertising (a fixed cost) and still break even? a $200,000 b. $500,000 C. $466,667 d. $333,333 e None of these choices are correct Step by Step Solution
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