What would the breakeven volume be at this new selling price

Reference no: EM13299036

East Publishing Company is doing an analysis of a proposed new finance text. Using the following data, answer parts a through e.

The company's marginal tax rate is 40 percent.
a. determine the company's breakeven volume for this book
i. in units
ii. in dollar sales
c. determine the number of copies East must sell in order to earn an (operating) profit of $21,000 on this text.
d. determine total (operating) profits at the following sales levels:
i. 3,000 units
ii. 5,000 units
iii. 10,000 units

e. suppose East feels that $30.00 is too high a price to charge for the new finance text. It has examined the competitive market and determined that $24.00 would be a better selling price. What would the breakeven volume be at this new selling price?

Reference no: EM13299036

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