Reid Enright is a publisher of self help books. His latest book sells for $24. The variable costs are 40% of sales price. The fixed costs are $52,000 annually. Reid has the following questions for you:

a.What could the variable costs consist of in building a book?

b.How much are the variable costs for this book?

c.What is the contribution margin per unit?

d.What does the contribution margin mean to me in regards to selling this book?

e.How many of these books to I have to sell to get my costs covered? How can I find this amount?

f.What would be the total sales dollars we would have to sell to recover all of our costs?