Question details

A book publisher has fixed costs
$ 10.00

A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy.

a.  How many books must be sold to break even?

b.  If the fixed cost increased, would the new break-even point be higher or lower?  Why?

c.  If the variable cost per unit decreased, would the new break-even point be higher or lower?  Why?

Available solutions