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Author Question: Elephant Books sells paperback books for $8 each. The variable cost per book is $6. At current ... (Read 452 times)

markburs

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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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markburs

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Reply 2 on: Aug 7, 2023
Gracias!


raili21

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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