A publishing company is publishing a new textbook for which the following total fixed and average variable costs have been estimated (see table) and it is requested that: a) Calculate the production at the dead point and the total sales revenue. b) Determine the production that could give a total cost of 60,000, as well as the revenue from sales at this level of production. What would be the dead point of this production? What would be the production that would lead to a total profit of 60,000? c) Assume that the total fixed costs are kept at 10,000, but the average variable cost falls to 10. What would be the publisher's dead point? What would be the production that would lead to the profit of 60,000? d) If the total fixed cost of the publisher is kept at 10,000 and the average variable cost at 20, but the publisher sets a price of 40, then what would be the dead point of production? What is the production with which the publisher will have a profit of 60,000?

Total fixed costs
Copy	1,000
Photocopy	7,000
Sales and promotion	2,000
Total fixed costs	10,000
Average variable costs
Printing and bookbinding	6
Administrative expenses	2
Sales commissions	1
Bookstore discounts	7
Copyright	4
Average variable cost	20
Suggested selling price	30