Question

The publisher from needs to change his calculations. Before the book is actually produced, rising paper costs increase variable costs to $2.10 per book. If the company wants to start making a profit at the same production level as before the paper cost increase,
for how much should they sell the book now?

Answer 1

Answer:

As the variable cost increased by $2.10 per book so if publisher wants to start making profit at same level of production then it should increase the selling price of the book by $2.10. As the increase in cost and selling price will be same so the publisher will also start making profit at same production level.