A small publishing company is planning to publish a new book. The production costs include one time fixed costs and variable cos
ts. There are two production methods it could use. With one method, the one time fixed costs will total $18,673, and the variable costs will be $18.50 per book. With the other method, the one time fixed costs will total $43,969, and the variable costs will be $10 per book. For how many books produced will the costs from the two methods be the same ?
According to the competitive parity budgeting method, in order to attain their growth objective, they would need to have 46 percent share of the total industry marketing effort. The correct answer is B.