Breakeven

pointlong dashChanging

costs/revenuesJWG Company publishes Creative

Crosswords.

Last year the book of puzzles sold for

$10.11

with variable operating cost per book of

$7.40

and fixed operating costs of

$39,000.

a. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if all figures remain the same as for last year?

b. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if fixed operating costs increase to

$43,000

and all other figures remain the same?

c. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the selling price increases to

$ 10.70

and all costs remain the same as for last year?

d. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the variable operating cost per book increases to

$ 7.99

and all other figures remain the same?

e. What conclusions about the operating breakeven point can be drawn from your answers?