A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variable cost will be $18, and the selling price per book will be $34.
a) How many books must be sold for this project to break even?
b) Suppose the publishers wish to take a total of $40,000 in salary for this project. How many books must be sold to break even, and what is the break-even point, in dollars?
a) number of books which are sold for this project to break even = Fixed Costs / Contribution margin = ...
The solution gives detailed steps on calculating the number of books for the project to break even.
Break-even point: Differences between Operating & Financial Leverage
1. How can sales-mix changes impact a company's break-even point? And what other techniques can be used to effect BE?
2. What are the similarities and differences between operating and financial leverage? Could you provide some examplesView Full Posting Details