A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $51,000, and variable costs (printing, paper, binding, shipping) at $1.70 for each book produced. With this pricing, 4147 books need to be produced and sold at $ 14.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $2.20 for each book produced.

Use this information to complete parts a. through c.

a.What strategies might the company use to deal with this increase in costs? Choose all that are reasonable.

A. Find different suppliers to try and lower the variable costs.

B. Increase the selling price of the book.

C. Decrease the fixed costs.

D. Increase the font size of the print in the book.

b.If the company continues to sell books at $14, how many books must they now sell to make a profit?The publisher must produce and sell at least ___ books to make a profit.

(Round up to the nearest whole book.)