Computation of break even points

Reference no: EM1316466

Computation of break even points.

East Publishing Company is doing an analysis of a proposed new finance text book. Using the following data, answer a through d.

Fixed costs per edition:

Development	$18,000
Copyediting	$5,000
Selling/Promo	$7,000
Typesetting	$40,000
Total	$70,000

Variable costs per copy:

Printing/bind	$4.20
Admin costs	$1.60
Sales comm.	$0.06	2% of selling price
Royalties	$3.60	12% of selling price
Discounts	$6.00	20% of selling price
Total	$16.00

Projected selling price $30.00
Tax rate is 40%
Determine the number of copies East must sell in order to earn an (operating) profit of $21,000 on this book.

Reference no: EM1316466

Questions Cloud

Find the second derivative : Find the second derivative

Confidence interval for multiple comparisons : Use a 95% confidence interval for multiple comparisons. Show your calculation by hand between Monday and Tuesday. Match your answer with Minitab output. Attach Minitab output.

Computation of break even points : Computation of break even points - What would the breakeven volume be at this new selling price?

Construct the probability distribution for x : A bag of jelly belly candies contains the following colored jelly beans: red (10), blue (2), orange (5), brown (21), green (0), and yellow (18). Construct the probability distribution for x.

Computation of break even points : Computation of break even points - Evaluate the number of copies East must sell in order to earn an (operating) profit of $21,000 on this book.

Computaion of variance of a stock on different economy : Computaion of variance of a stock on different economy and what is the coefficient of variation on the company's stock

Use rules of differentiation : Use rules of differentiation.

Determine equilibrium price-output and shut down price : Assume that the graph on the next page illustrates the marginal, average variable and average total cost curves of a typical coffee grower-Assume that the current market price at the wholesale level is $5 per pound. How much coffee will this typica..

Find out statistical support in this poll for statement : Explain can you find out statistical support in this poll for that statement. When it comes to the war in Iraq, among which of the subsiquent statements comes closer to your point of view.

User Account

All Pages