1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jekas [21]
3 years ago
10

The world-famous discounter, Fernwood Booksellers, specializes in selling paperbacks for $7 each. The variable cost per book is

$5. At current annual sales of 200,000 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.
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?
Business
1 answer:
Ghella [55]3 years ago
4 0

Answer:

Advertising= $933,333

Explanation:

Giving the following information:

The world-famous discounter, Fernwood Booksellers, specializes in selling paperbacks for $7 each. The variable cost per book is $5. At current annual sales of 200,000 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.

First, we need to calculate the fixed costs:

Break-even point (units)= fixed costs/ contribution margin

200,000=  fixed costs/ (7 - 5)

200,000= fixed costs/ 2

fixed costs= $400,000

Now, we need to calculate the new break-even point in dollars and units:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 400,000 / (6/7)= $466,666.67

Break-even point (units)= fixed costs/ contribution margin

Break-even point (units)= 400,000/6= 66,667 books

Total cost= 400,000 + $66,667= $466,667

Current income= 200,000*7= $1,400,000

Advertising= 1,400,000 - 466,667= $933,333

You might be interested in
There is a need to develop theories about what kind of fraud has occurred.
Mashcka [7]
A fraud in general terms refers to a wrongful or criminal deception intended to result in a financial or personal gain. This kind of acts should be more observe especially to those people that are done by the wrongful act and theories and some investigation should be done in order to counter the next incident that might happen with the same kind of fraud.
4 0
3 years ago
While viewing a webpage for outdoor gear, Phil noticed a graphic display advertising skateboards at low prices. When he clicked
AURORKA [14]

Answer: This is an example of<em><u> "paid display" </u></em>type of Internet advertising

Paid display or pay-per-click advertising, is an effortless, inexpensive way to compass the right masses.

Here, When Phil clicked on the ad, it took him to a different website where the skateboards were listed for sale. Thus targeting the right audience with right ad.

5 0
3 years ago
Prime Computers is a company that sells computers and software. The company has a website that allows customers to post comments
Oliga [24]

Group of answer choices.

A. Most online shoppers will only buy products if they can voice their opinions about them after the purchase.

B. Most online shoppers search the Internet for ratings and reviews before making major purchase decisions.

C. Negative consumer feedback can actually attract more customer interest in the product.

D. Allowing consumer feedback makes it less likely that consumers will provide their feedback.

E. Consumers are more likely to say positive things about companies that value their opinions.

Answer:

B. Most online shoppers search the Internet for ratings and reviews before making major purchase decisions.

Explanation:

Customer relationship management can be defined as a strategic process which typically involves combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Thus, this set of employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

This ultimately implies that, customer relationship management is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers.

Hence, it is very important for Prime Computers to encourage customer feedback on its website and as a policy because most online shoppers (customers) usually engage in an online search in order to see other customer's ratings and reviews of company's product or service before making major purchase decisions.

5 0
3 years ago
Is 40 a prime number​
Nat2105 [25]

Answer: No, 40 is a composite number. :)

Explanation:

8 0
3 years ago
On june​ 1, nicholson company purchased inventory on account with a cost of. Credit terms were​ 2/10, net 30. On june​ 2, nichol
alex41 [277]

The Journal entry which Nicholson company will prepare on June​ 2 will be like when goods are returned the reverse entry is made which is

Accounts Payable A/c                                      Dr.       $480

Purchase Return / Inventory  A/c                     Cr.       $480

A journal entry is an act of recording any transaction, whether it is economic or not. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.

Accounting journal entries are transferred from the journals and posted to the general ledger in order to record financial transactions in the accounting system. Modern accounting software handles the majority of this process automatically, but it's crucial to understand what's going on since there are instances when manual entries will need to be made to adjust or correct account balances at the conclusion of an accounting month.

To learn more about Journal entry visit:  brainly.com/question/20421012

#SPJ4

8 0
1 year ago
Other questions:
  • When an economist says that the demand for a product has increased, this means that
    13·1 answer
  • When problems arise, you may talk to your supervisor or use the company’s ___________. A. Employee benefits B. Litigation policy
    5·1 answer
  • Accounting for Treasury Stock On February 1, 2019, Destiny Enterprise repurchases 750 shares of its outstanding common stock for
    6·2 answers
  • Kingbird, Inc. purchased office supplies costing $7980 and debited Supplies for the full amount. At the end of the accounting pe
    5·1 answer
  • Workplace harassment protects only a isn’t harassment that is physical in nature?
    8·1 answer
  • Preparing adjusting entries LO P1, P3, P4
    6·1 answer
  • Calculate the future value of $1,000 in a. Four years at an interest rate of 7% per year. b. Eight years at an interest rate of
    15·1 answer
  • Even though Miller loves bacon, he is worried about his cholesterol. He is also concerned how eating bacon may affect it. Before
    8·1 answer
  • _______________ are typically thought of as "the voice of the consumer." Their job is putting consumers at the center of the com
    9·1 answer
  • Introduction to the future value of money Aa Aa Under the concepts of the time value of money, you can determine the future valu
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!