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Computation of breakeven volume in units and in dollar sales and breakeven chart.
A company is doing an analysis of a proposed new finance textbook.Fixed cost per edition
Development (reviews class testing and so on)
18,000
Copyediting
5,000
Selling and promotion
7000
Typesetting
40,000
Total
70,000
Variable Costs per copy
Printing and binding
4.2
Administration cost
1.6
Salesperson's commission (2% of selling price)
0.6
Author's royalties (12% of selling cost)
3.6
Bookstore discounts (20% of selling cost)
6
$16.00
Projected selling price
$30.00
Marginal tax rate is 40%
Determine the breakeven volume in units and in dollar sales
Develop a breakeven chart for the textbook
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