The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs:
Total fixed costs:
Copy editing $ 10,000
Typesetting 70,000
Selling and promotion 20,000
Total fixed costs $100,000
Average variable costs:
Printing and binding $ 6
Administrative costs 2
Sales commissions 1
Bookstore discounts 7
Author's royalties 4
___________
Average variable costs $20
roject selling price $30
(a) Determine the breakeven output and total sales revenues (b) determine the output that would generate a total profit of $60,000 and the total sales revenues at that output level;
Total fixed costs:
Copy editing $ 10,000
Typesetting 70,000
Selling and promotion 20,000
Total fixed costs $100,000
Average variable costs:
Printing and binding $ 6
Administrative costs 2
Sales commissions 1
Bookstore discounts 7
Author's royalties 4
___________
Average variable costs $20
roject selling price $30
(a) Determine the breakeven output and total sales revenues (b) determine the output that would generate a total profit of $60,000 and the total sales revenues at that output level;