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A publisher for a promising new novel figures fixed costs ( overhead , advances, promotion, copy editing, typesetting, and so on ) at $ 5
A publisher for a promising new novel figures fixed costs overhead advances, promotion, copy editing, typesetting, and so on at $ and variable costs printing paper, binding, shipping at $ for each book produced. With this pricing, books need to be produced and sold at $ each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $ for each book produced.
Use this information to complete parts a through
a What strategies might the company use to deal with this increase in costs? Choose all that are reasonable.
A Increase the font size of the print in the book.
B Increase the selling price of the book.
C Decrease the fixed costs.
D Find different suppliers to try and lower the variable costs.
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