Homework Help (WK4)

Homework Help (WK4) - Higher See example below: 500,000 /...

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Week 4 Help CH7, Pg 216, P6 Freddy, I got the same answer as you. .. I am pretty sure that your answer is "GTG". A book publisher has a fixed cost of $300,000 and variable cost per book of $8.00. The book sells for $23.00 per copy. ( a) How many books must be sold to break even? 300,000 / (23.00 – 8.00) = 20,000 books (b) If the fixed cost increased, would the break-even point be higher or lower?
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Unformatted text preview: Higher See example below: 500,000 / (23.00 8.00) = 500,000 / 15 = 33,333 books (c) If the variable cost per unit decreased, would the new break-even point be higher or lower? Lower See example below: 300,000 / (23.00 7.00) = 300,000 / 16 = 18,750 books...
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