13. The costs of publishing a grade school textbook can be assumed to be as follows: Fixedexpenses for each new edition of the book: Copy editing $3,000 Art work $1,000 Typesetting$36,000 Variable expenses per copy of the book: Printing and binding $1.60 Bookstorediscounts $2.00 Salespersons' commissions $0.25 Author's royalties $1.00 Each book sells for $10 per copy The unit contribution margin for each copy of the book is: The contributionmargin ratio for the textbook is: How many books must be sold to break even? The publishingcompany is currently selling 8,000 copies of the textbook per edition but management feelsthat sales could be increased by 1,000 books if the selling price per book was reduced by $1.00 per copy. If such a policy is implemented how much would the total contribution marginchange?

The unit contribution margin is calculated by subtracting the variable cost per unit from the…

Answered: 13. The costs of publishing a grade…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A textbook publisher produces a textbook for $25 per book and sells 160 books to the Campus Bookstore for $50 per unit. The bookstore sells the textbook new for $75 and used for $60. This edition of the book is used for 2 years (4 semesters). The book-store sells all textbooks that it has at the beginning each semester, and it repurchases 50% of those at the end of each semester for $30. What is the sales income over the life of this 160-unit lot of textbooks? A $16,800 OB. $11,600 OC.$11,900 OD. $14,000 E. None of the given answers are correct.
A new book publishing and sales project estimates that the first year 7,000 printed units and 2,000 digital units will be sold.The printer will charge them $5 for each book.The publisher will sell the books for $12 each.The virtual books will be sold for $6 through a platform and the publisher receives $3.The authors of the books receive 5% of the sales made by the publisher, whether online or in print, which is recorded as an expense. The market study suggests that sales of printed books can increase at 20% per year and those of digital format at 30% per year.The initial equipment will be reduced, since they work with the subcontracting of printed material. Basically, they include computer equipment, software and furniture that have a value of 20,000; In addition, a vehicle will be purchased for a value of 15,000. Computer equipment, software and furniture are depreciated instraight line in 5 years. In year 6, these equipments must be bought again for the same value.The vehicle is…
9. Economic Lot Size SM (Soriano-Manuel) Bookstore publishes a book about RFBT. SM prints 5,000 copies of the book evenly throughout the year. The set-up cost is P 10 while the optimal production run (economic lot size) is 200. REQUIRED: How much is the unit carrying cost of the book per year?
Bramble Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities Advertising Instrument Rent Teaching Instruction Books Other Costs (a) Bramble Journeys charges $100 per student per month. (1) ✓ Your answer is correct. Determine the company's break-even point in (1) number of students taught per month and (2) dollars. (2) (b) $1.990 per month $1,042 per month $720 per month $36 per student Show Transcribed Text $5 per student $3 per student (1) Break even in number of students taught per month (2) Break even in dollars * Your answer is incorrect. Break even in number of students taught per month Amount to charge per student Bramble Journeys has just received notice that the rent on their facilities will be increasing by $428 per month and the instrument rent will also be increasing $20 per month. (1) Determine the company's break-even point in the number of students taught per month based on the new…
A textbook publisher produces a textbook for $50 per book and sells to the Campus Bookstore for $75 per unit. The bookstore sells the textbook new for $100 and used for $60. It is able to buy unlimited amounts of used books from a secondary supplier for $50. The bookstore buys a lot of 250 new books from the publisher. What is the net profit (sales-cost) to the publisher for this order? (a) $25 (b) (250)(75-50) = $6250 (c) $10,000 (d) $2500
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Joyful Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities $2,200 per month Advertising $274 per month Instrument Rent $750 per month Teaching Instruction $40 per student Books $5 per student Other Costs $3 per student Joyful Journeys charges $100 per student per month. Determine the company’s break-even point in (1) number of students taught per month and (2) dollars. (1) Break even in number of students taught per month 62 (2) Break even in dollars $6,200 Joyful Journeys has just received notice that the rent on their facilities will be increasing by $500 per month and the instrument rent will also be increasing $20 per month. (1) Determine the company’s break-even point in the number of students taught per month based on the new information. (2) Determine the amount to charge per student assuming that Joyful Journeys does not increase the number…
You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital versions. The paper version costs you $400 and you can sell it for $600. The digital version costs you $100 and you can sell it for $200.  Last semester you sold 10 paper versions and 100 digital versions for total sales of $26,000. You expect that sales mix will continue this semester. - If your semester fixed costs are $6,000 for a publisher's license, what dollar amount of sales will you need to breakeven? - How many paper and digital books will you have to sell to break even? - How much operating income did you have last semester?
Please help!!! You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital versions. The paper version costs you $400 and you can sell it for $600. The digital version costs you $100 and you can sell it for $200.  Last semester you sold 10 paper versions and 100 digital versions for total sales of $26,000. You expect that sales mix will continue this semester. - If your semester fixed costs are $6,000 for a publisher's license, what dollar amount of sales will you need to breakeven? - How many paper and digital books will you have to sell to break even? - How much operating income did you have last semester?
Wyoming Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wyoming Waters has the following ticket prices and variable costs for the year: Individual Family Sale price per ticket $35 $105 Variable cost per ticket 25 100 Wyoming Waters expects to sell one individual ticket for every three family tickets. Wyoming Waters' total fixed costs are $25,000. Requirement 2. Calculate the total number of tickets Wyoming Waters must sell to break even. Start by selecting the formula and entering the amounts to calculate the total number of tickets Wyoming Waters must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all input fields. For items with a zero value, enter "0".) (Fixed costs + Target profit) ÷ Weighted-avg. CM per unit = Required sales in units ( + ) ÷ =…

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