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Determine East' breakeven volume for their sales of books.

Determine the company's breakeven volume for this book
i) in units
ii) in dollar sales

Develop a breakeven chart for the text

Determine the number of copies EAST must sell in order to earn an operating profit of $21,000 on this text

Determine the total operating profits at the following sales levels:

i) 3,000 units
ii) 5,000 units
iii) 10,000 units

Suppose East feels that $30,000 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 breakeven volume be at $24.00 a book?

See attached file for full problem description.


Solution Preview

Please see the attached file.

Problem 1A
East publishing company is dong an analysis of a proposed new finance text.

Fixed Costs per edition
Development (reviews, class testing and so on) $18,000
copyediting 5,000
selling and promotion 7,000
typesetting 40,000
total $70,000

Variable Costs per copy
Printing and binding $4.20
administrative costs 1.6
Salespeople's commission (2% of selling price) 0.6
Author's royalties (12% of selling price) 3.6
Bookstore discounts (20% ...

Solution Summary

This solution is comprised of a detailed explanation and calculate the breakeven point and volume of books sold as required by this assignment in excel file.