Question 3 (20) Media Publishers is negotiating to publish, a new book that promises to be an instant bestseller. The fixed costs of producing and marketing the book will be $600,000. The variable costs of producing and marketing will be $4.80 per book. These costs are before any payments to author of the book. The author of the book negotiated an up-front payment of $3.60 million plus a 15% royalty rate on the net sales price of each book. The net sales price is the listed bookstore price of $36 minus the margin paid to the bookstore to sell the book. The normal book-store margin of 30% of the listed bookstore price is expected to apply. REQUIRED 1. How many copies must Media Publishers sell to (a) break even and (b) earn a target operating profit of $2.4 million? 2. It is recommended that the normal bookstore margin be decreased to 20% of the listed bookstore price of $36. How many copies must Media Publishers sell to (a) break even and (b) earn a target operating profit of $2.0 million