Determine possible break even point production and pricing

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Reference no: EM1338135

A book publishing company has hired a marketing consultation company to develop several "scenarios" regarding possible break even point production and pricing and also a suggested retail pricing model based upon book sale projections. There are three different books of various lengths (number of pages).

The following facts are available:

1. The production cost for pages in the book is .07 per page. This includes paper and ink.

2. The plate charge per page is $2.00 per page

3. The setup charge per book (regardless of the number of pages) is $1500

4. The company is interested in production runs of 30,000 books, 40,000 books and 65,000 books

5. Books will have 400, 600 and 800 pages

Reference no: EM1338135

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