suppose that you are a consultant to a firm that publishes books. suppose that t

Question

suppose that you are a consultant to a firm that publishes books. suppose that the firm is about to publish a book that will sell for $24 a copy. the fixed coat of publishing the book are $7200, the variable cost is $18 a copy. what is the break even point of this book? suppose that you are a consultant to a firm that publishes books. suppose that the firm is about to publish a book that will sell for $24 a copy. the fixed coat of publishing the book are $7200, the variable cost is $18 a copy. what is the break even point of this book?

Explanation / Answer

Selling Price (A) $                   24 Less:Variable Cost (B) $                 (18) Contribution (C=A-B) $                     6 Fixed Cost (D) $             7,200 Breakeven Sales Quantity (E=D/C)                 1,200 Breakeven Sales Amount (A x E) $           28,800

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