Determine the bookstores unit-level contribution

Assignment Help Cost Accounting

Reference no: EM133483277

Question: Chicago Publishers produces and sells new textbooks to college and university bookstores. Assume typical project-level costs total $285,000 for a new textbook. Production and distribution costs amount to 20% of the net amount the publisher receives from the bookstores. Textbook authors are paid a royalty of 15% of the net amount received from the bookstores. Determine the dollar sales volume required for Chicago to break even on a new textbook. This is the amount the bookstore pays the publisher, not the bookstore's sales revenue.
Note: Round your answer to the nearest whole dollar. $438,462 (This is the correct amount that the bookstore is suppose to pay the publisher)

e. For a project with predicted sales of 10,000 new books at $125 each, determine

1. The bookstores' unit-level contribution.

2. The publisher's project-level contribution.

3. The author's royalties.

Reference no: EM133483277

Questions Cloud

Diffusion and utilization of medical technology : Diffusion and utilization of medical technology, the government's role in technology diffusion, the impact of medical technology, assessment

Need of investing some of its liquidity : Analyse of this opportunity and give him a qualitative statement to be delivered to Mrs Brown and Mr Johnson. The statement should cover all investments

Which option would you choose and why : Given Virgin Mobile's target market (14 to 24-yeard-olds, how should it structure its pricing? Which option would you choose and why?

Production budget for the second quarter : production budget for the second quarter beginning April, by month and in total. a direct material purchases budget showing the quantity of materials

Determine the bookstores unit-level contribution : Determine the bookstores unit-level contribution and the publishers project-level contribution

How they look at and manage disagreements : What are the key differences between a confrontational and avoids confrontation culture in terms of how they look at and manage disagreements?

Role of workflow analysis-human factors : Outline the role of workflow analysis, human factors, and user-centered design concepts for your chosen technology example.

What ways does the fear of the unknown influences behavior : In what ways does the fear of the unknown influences behavior? give at least one practical example to support your argument.

How did the situation resolve : Briefly describe the meeting. How did the situation resolve? What could be done differently if that situation were to recur?

User Account

All Pages