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Breakeven Output and Total Sales Revenue

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 Cost 2
Sales Commissions 1
Bookstore Discounts 7
Author's royalties 4
Average variable costs $ 20.00

Project Selling Price $ 30.00

Determine the breakeven output and total sales revenues. Determine the output that would generate a total profit of 60,000 and the total sales revenue at that output level.

Solution Preview

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 ...

$2.19