Calculate the contribution margin for each copy

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Reference no: EM1355825

Fixed expenses for each new edition of the book

Copy editing $3,000.00
Art work $1,000.00
Typesetting $36,000.00

Variable expenses per copy of the book
Printing and binding $1.60
Bookstore discounts $2.00
Salespersons commission $0.25
Author Royalities $1.00

Each book sells for $10 per copy

Question 1:
What would be the contribution margin for each copy of the book ?
Question 2:
The contribution margin ratio for the textbook is?

Reference no: EM1355825

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