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Author Question: Elephant Books sells paperback books for $8 each. The variable cost per book is $6. At current ... (Read 55 times)

markburs

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on: Aug 7, 2023

Question 1

DeLong Inc. has fixed operating costs of $510,000, variable costs of $3.20 per unit produced, and its products sell for $5 per unit. What is the company’s break-even point; that is, at what unit sales volume would income equal costs?

◦

283,333


◦

296,667


◦

310,813


◦

345,403



Question 2

Elephant Books sells paperback books for $8 each. The variable cost per book is $6. At current annual sales of 300,000 books, the publisher is just breaking even. It is estimated that if the authors’ royalties are reduced, the variable cost per book will drop by $1.50. Assume authors’ royalties are reduced and sales remain constant; how much more money can the publisher put into advertising (a fixed cost) and still break even?

◦

$200,000


◦

$310,000


◦

$450,000


◦

$550,000

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Marked as best answer by markburs on Aug 7, 2023

MistyHubbard

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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markburs

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Reply 2 on: Aug 7, 2023
Gracias!

cpetit11

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Reply 3 on: Yesterday
Excellent

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