Determine the bookstores unit-level contribution

Reference no: EM133483277

Question: Chicago Publishers produces and sells new textbooks to college and university bookstores. Assume typical project-level costs total $285,000 for a new textbook. Production and distribution costs amount to 20% of the net amount the publisher receives from the bookstores. Textbook authors are paid a royalty of 15% of the net amount received from the bookstores. Determine the dollar sales volume required for Chicago to break even on a new textbook. This is the amount the bookstore pays the publisher, not the bookstore's sales revenue.
Note: Round your answer to the nearest whole dollar. $438,462 (This is the correct amount that the bookstore is suppose to pay the publisher)

e. For a project with predicted sales of 10,000 new books at $125 each, determine

1. The bookstores' unit-level contribution.

2. The publisher's project-level contribution.

3. The author's royalties.

Reference no: EM133483277

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