A book publisher has fixed costs of $450,000 and variable costs per book of $12.00. The book sells for $32.00 per copy.

a.How many books must be sold to break even?(Roundup your answer to the next whole number.)

b.If the fixed cost increased, would the new break-even point be higher or lower?

multiple choice 1

• Higher
• Lower
• It would remain the same
• There is insufficient information to answer this question

c.If the variable cost per unit decreased, would the new break-even point be higher or lower?

multiple choice 2

• Higher
• Lower
• It would remain the same
• There is insufficient information to answer this question