Question
Kai sells a small magazine full of celebrity gossip to college students for $2.26 per copy. Hiring the printing press for one day, the only
Kai sells a small magazine full of celebrity gossip to college students for $2.26 per copy. Hiring the printing press for one day, the only fixed cost, is $435 per issue. The variable cost of printing each issue is $1.12 per copy. The printer tells Kai the cost of hiring the press is to increase by $108 per day. Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?
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