Determine the breakeven output and total sales revenues

Reference no: EM13693842

The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs:

Total fixed costs:

Copy editing $10,000

Typesetting 70,000

Selling and Promotion 20,000

Total fixed costs $100,000

Average variable costs:

Printing and binding $6

Administrative costs 2

Sales commission 1

Bookstore discounts 7

Author's royalties 4

Average variable costs $20

Project selling price $30

a) Determine the breakeven output and total sales revenues.

b) Determine the output that would generate a total profit of $60,000 and the total sales revenues at that output level.

Reference no: EM13693842

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