Determine the output that would generate a total profit

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Reference no: EM13154438

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 Costs = $2

Sales Commissions = $1

Bookstore Discounts = $7

Author's Royalties = $4

Average Variable Costs = $20

Project Selling Price = $30

a). Determine the breakeven output and total sales revenues and draw the cost-volume-profit chart, and b). determine the output that would generate a total profit of $60,000 and the total sales revenues at the output level; draw the cost-volume-profit chart.

Reference no: EM13154438

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