The Goldberg-Scheinman Pu

The Goldberg-Scheinman Pu

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 = $10,000Typesetting = $70,000Selling and Promotion = $20,000Total Fixed Costs = $100,000Average Variable Costs:Printing and Binding = $6Administrative Costs = $2Sales Commissions = $1Bookstore Discounts = $7Author’s Royalties = $4Average Variable Costs = $20Project Selling Price = $30a). Determine the breakeven output and total sales revenues and draw the cost-volume-profit chart, and b). determine the output that would generate a total profit of $60,000 and the total sales revenues at the output level; draw the cost-volume-profit chart.

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