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What is the minimum price per copy

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Reference no: EM132537642

Utamabooks plans to publish an updated version of their popular Statistics textbook. The fixed cost of manuscript preparation, textbook design and production setup is estimated to be RM 80,000. Variable production and material costs are estimated to be RM3 per book. The marketing department estimates that they are able to sell 4000 copies of the textbook before it needs to be updated again. The company plans to sell the books to their booksellers for RM20 each.

Question (a) What is the breakeven point?

Question (b) With 4000 copies, will it be profitable?

Question (c) With the estimated demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even?

Question (d) If the selling price is increased to RM25.95, and the estimated demand remains the same, would you recommend that the publishing take place?

Question (e) Construct the problem using the Excel model.

Reference no: EM132537642

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