Question

A publisher for a promising new novel figures fixed costs​ (overhead, advances,​ promotion, copy​ editing, typesetting, and so​ on) at ​$​, and variable costs​ (printing, paper,​ binding, shipping) at ​$ for each book produced. With this​ pricing, books need to be produced and sold at each for the publisher to break even. ​ However, rising prices for paper require an increase in variable costs to ​$ for each book produced. Use this information to complete parts a. through c. a. What strategies might the company use to deal with this increase in​ costs? Choose all that are reasonable. A. Find different suppliers to try and lower the variable costs. This is the correct answer.B. Decrease the fixed costs. Your answer is not correct.C. Increase the font size of the print in the book. Your answer is not correct.D. Increase the selling price of the book. Your answer is correct. b. If the company continues to sell books at ​$​, how many books must they now sell to make a​ profit? The publisher must produce and sell at least 4473 books to make a profit. ​(Round up to the nearest whole​ book.)

Answer 1

Answer:

a. What strategies might the company use to deal with this increase in​ costs?

A. Find different suppliers to try and lower the variable costs.

D. Increase the selling price of the book.

b. If the company continues to sell books at ​$​, how many books must they now sell to make a​ profit?

The publisher must produce and sell at least 4473 (Approx. 4000 books) books to make a profit. ​

Explanation: