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Q4P-13 The following data relate to a popular book sold by a publisher: Fixed Costs: Copy Editing $ 6,330 Artwork $ 2,497 Typesetting $ 70,268
Q4P-13 The following data relate to a popular book sold by a publisher: | |||||||||||||
Fixed Costs: | |||||||||||||
Copy Editing $ | 6,330 | ||||||||||||
Artwork $ | 2,497 | ||||||||||||
Typesetting $ | 70,268 | ||||||||||||
Variable Costs per copy: | |||||||||||||
Printing and Binding $ | 3.48 | ||||||||||||
Bookstore Discounts $ | 4.45 | ||||||||||||
Sales Commissions $ | 0.78 | ||||||||||||
Authors Royalties $ | 2.22 | ||||||||||||
Each novel copy sells for $ | 23 | ||||||||||||
Last month the company sold in copies: | 10,820 | ||||||||||||
Production manager suggests to buy an additional machine for | $14,500 | cost per month and will decrease the variable cost by | $3.75 | per copy | |||||||||
Required: What is the profit impact to the publisher if the above suggestion is adopted. | |||||||||||||
Must show your profit impact method calculation to receive marks and round your answer to the nearbest dollar. |
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