Breakeven analysis
Not what you're looking for?
The Goldberg-Scheinman Publishing Company is publishing a new managerial economics test for which it has estimated the following 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 - 6.00
Administrative costs - 2.00
Sales commissions - 1.00
Bookstore discounts - 7.00
Author's royalties - 4.00
Average variable costs = 20.00
Project selling price = 30.00
(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.
Please help! I do not understand this cost analysis stuff at all.
Purchase this Solution
Solution Summary
The solution explains some calculations relating to breakeven
Solution Preview
(a) Determine the breakeven output and total sales revenues.
Breakeven output is when total revenue = total cost and is calculated as
Berakeven output in units = Fixed cost/unit ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.