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I need your assistance in setting a selling price for a new book in the adult non - fiction division to be released in 2
I need your assistance in setting a selling price for a new book in the adult nonfiction division to be
released in Forgotten Landscapes. We'll select the best of two methods to price the book: full
absorption costbased pricing, marking up total unit production costs by consistent across all
books; or demandbased pricing, looking at expected sales volumes at different price points based on
market analysis. Please calculate a target price using these two methods and recommend a selling price
for this book.
Please also qualitatively compare the benefits and drawbacks of each of the two methods.
We anticipate high demand for this book; however, given the printing costs for the highquality photos,
we expect the margin to be lower. Demand and pricing tend to increase over time for these books as the
photographers become better known.
Our commitment is an initial print batch of books, with the capacity to print additional batches.
A competitor's book showcasing a more famous photographer is priced at $
Fixed costs for volumes between and books will be $ for production overhead and
$ for selling, general, and administration.
Perbook costs are as follows:
The marketing department estimated the number of books that could be sold at different prices
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