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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 non-fiction division to be
released in 2023, Forgotten Landscapes. We'll select the best of two methods to price the book: 1) full
absorption cost-based pricing, marking up total unit production costs by 50%(consistent across all
books); or 2) demand-based 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 high-quality 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 10,000 books, with the capacity to print additional batches.
A competitor's book showcasing a more famous photographer is priced at $70.
Fixed costs for volumes between 8,000 and 14,000 books will be $150,000 for production overhead and
$130,000 for selling, general, and administration.
Per-book costs are as follows:
The marketing department estimated the number of books that could be sold at different prices
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