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yuradex [85]
3 years ago
14

The Junior League of Yadkinville, California, collected recipes from members and pub- lished a cookbook entitled Food for Everyo

ne. The book will sell for $18 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 2,000 books to break even on its $4,000 investment. What is the variable cost per unit assumed in the Junior League’s analysis?
Business
1 answer:
MaRussiya [10]3 years ago
4 0

Answer:The variable cost per book is $16

Explanation:

Sale price per book = $18

Books need to sell = 2,000

Total Revenue. = $36,000

($18*2,000)

At Break Even Total Revenue = Cost + investment so total variable cost is ($36,000 - $4,000) = $32,000 and cost per book is $32,000÷2,000 = $16 per book

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