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Q4I-12 The following data relate to a popular book sold by a publisher: Fixed Costs: Copy Editing $ 6,472 Artwork $ 2,360 Typesetting $ 70,552
Q4I-12 The following data relate to a popular book sold by a publisher: | |||||||||||||
Fixed Costs: | |||||||||||||
Copy Editing $ | 6,472 | ||||||||||||
Artwork $ | 2,360 | ||||||||||||
Typesetting $ | 70,552 | ||||||||||||
Variable Costs per copy: | |||||||||||||
Printing and Binding $ | 3.03 | ||||||||||||
Bookstore Discounts $ | 4.26 | ||||||||||||
Sales Commissions $ | 0.53 | ||||||||||||
Authors Royalties $ | 2.48 | ||||||||||||
Each novel copy sells for $ | 23 | ||||||||||||
Last month the company sold in copies: | 10,229 | ||||||||||||
Production manager suggests to buy an additional machine for | $6,000 | cost per month and will decrease the variable cost by | $1.45 | per copy | |||||||||
Required: Calculate the indifference point (in copies) for the proposed production system and the existing system | |||||||||||||
Round your answer to the nearbest copy (unit). |
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