Answer:
a. Determine the company’s breakeven volume for this book. •i. In units ii. In dollar sales 
total fixed costs = $70,000
variable costs per unit = $16
sales price = $30
contribution margin = $30 - $16 = $14
break even point in units = $70,000 / $14 = 5,000 textbooks
break even point in $ = 5,000 x $30 = $150,000
b. Develop a breakeven chart for the text. 
units	fixed costs	variable costs      total costs     total sales
0         70000                     0                  70000           0
1000	70000          16000          86000      30000
2000	70000         32000         102000      60000
3000	70000         48000          118000      90000
4000	70000         64000         134000     120000
<u>5000	70000         80000         150000       150000
</u>
6000	70000         96000      	166000     180000
   
I attached the graph that corresponds to this break even chart.
              
c. Determine the number of copies East must sell in order to earn an (operating) profit of $21,000 on this text. 
($70,000 + $21,000) / $14 = 6,500 units
total sales = 6,500 x 30 = $195,000
d. Determine total (operating) profits at the following sales levels: i. 3,000 units •ii. 5,000 units iii. 10,000 units 
i. $28,000 loss
ii. no gain/loss, break even point
iii. $70,000 gain
        
e. Suppose East feels that $30.00 is too high a price to charge for the new finance text. It has examined the competitive market and determined that $24.00 would be a better selling price. What would the break even volume be at this new selling price?
new contribution margin = $24 - $16 = $8
new break even point in units = $70,000 / $8 = 8,750 textbooks