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

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:

A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost andrevenue curves are linear, how much output must the firm product to break even?

How could breakeven analysis be applied to the decision making process involved in introducing a new service? Are there any constraints to using this method to make a decision regarding the implementation of a new service?

A company fixed operating costs are $500,000, its variable costs are $3.00 per unit, and the product's sales price is $4.00. What is the company's breakeven point, that is, at what unit sales volume would its income equal its costs?

Steve Stiff & Company management provides the following data for the year 2005 planning:
Sales (1,500 units).............$ 25.00 per unit
Variable Cost ...................10.00 per unit
Fixed Costs ....................$ 15,000
Tax Rate ........................40%
Desired Profit .................$60,000
Determin

1. You are selling crafts - candles you make at home and sell at art fairs. Your fixed costs are $5,000 per year. Each candle costs $2.00 to make (variable cost) and sells for $10.00. What is your breakeven in dollars and units?
2. You are selling candy bars at a stand at the local event. The fixed costs of building th

What is the breakeven point from the given below information?
fixed costs $20,000
variable costs 33% of sales
avg selling price is $10,000
a) As % of sales, what is its variable or contribution margin?
b) If the average sale is $10,000 what is the contribution margin/vehicle?
c

1. The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit andtotal fixed costs of $100. Determine the break even level of output.
2. Given the following information, answer the following questions.
TR = $3
TC = $1,500 + $2Q
a. What is the break-even lev

NEED HELP IN DEFINING THE QUESTION AND READ THE GRAPHS
---
1. Define revenue, fixed cost, variable cost, and contribution margin.
2. What is meant by the term break-even point? Why are managers of a company interested in the break-even point?
3. "A change in fixed costs" in the second cell under break-even analysi