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Calculate number of print textbook rudy publishing must sell

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Rudy Publishing is a text book publisher. Rudy sells to bookstores for $70 per book. Each book costs $45 in print costs. The authors make $15 in royalties on each book sold. Advertising and marketing costs are $100,000 per title. Rudy Publishing is thinking of creating an e-book for one of its titles. An e-book will have no printing costs but will have an additional fixed cost of $50,000. Comparable e-books sell for $45 each.

Required.

Question 1: With respect to the number of textbooks being sold, what type of cost is the authorís royalty?

Question 2: Calculate the unit contribution margin in dollars that Rudy Publishing makes on each printed textbook.

Question 3: Calculate the number of print textbooks Rudy Publishing must sell in order to break even.

Question 4: Calculate the number of e-books Rudy Publishing must sell in order to break even.

Reference no: EM132786897

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