Jacob, a chef who lives in the community, is really excited to start his own cookbook. He found a local publishing house charging him $ 25,500 per year in overhead (fixed costs), $ 14 per textbook in publishing costs, and a copyright fee of 10% of the sale price. reported that they could print a maximum of 12,000 books per year. Jacob decided, with the publishing house, to sell the book for $ 25 each. a) Create a break-even graph that shows fixed costs, total costs, total revenue, break-even point, and areas of profit and loss. cule ic co b) Determine the break-even point in relation to volume and in relation to resales and calculate the break-even point as a percentage of maximum capacity. C) Calculate the new break-even point for volume and revenue if the fixed cost increases 15% per year, the publishing cost increases to $ 6 per book, and the sale price increases to $ 30.
Jacob, a chef who lives in the community, is really excited to start his own cookbook. He found a local publishing house charging him $ 25,500 per year in overhead (fixed costs), $ 14 per textbook in publishing costs, and a copyright fee of 10% of the sale price. reported that they could print a maximum of 12,000 books per year. Jacob decided, with the publishing house, to sell the book for $ 25 each. a) Create a break-even graph that shows fixed costs, total costs, total revenue, break-even point, and areas of
Step by step
Solved in 2 steps with 1 images
