You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $700,000 per month, and you have contractual salary obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper.

a. If sales fall by 20 percent from1,000,000 newspapers per month to800,000 newspapers per month, what happens to the AFC per newspaper?

AFC/newspaper rises from $1.95 to $2.43. correct

c. What happens to the minimum amount that you must charge to break even??