What is the new break even quantity

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Emma Jones contracted with the publisher of a GMAT test preparation manual package to sell the review materials at college fairs. She can purchase the book from the wholesaler at $71 per package, with the privilege of returning all unsold packages and receiving a $71 refund per package. She plans to sell the packages for $235 each. She also knows that she must pay $2820 to the organizers of the college fair for the booth rental. She will incur no other costs. Emma is considering an option whereby instead of paying a fixed cost of $2820 to rent the booth, she would pay a lower fixed cost plus a commission based on sales. If fixed costs are reduced by 55 percent and the commission is 15 percent of sales, what is the new break even quantity for Emma?

Reference no: EM13863671

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