a. What strategies might the company use to deal with this increase in costs? Choose all that are reasonable. A publisher for a

Question

a. What strategies might the company use to deal with this increase in costs? Choose all that are reasonable.
A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $55,000, and variable costs (printing,
paper, binding, shipping) at $1.30 for each book produced. With this pricing, 5671 books need to be produced and sold at $11.00 each for the publisher to break even.
However, rising prices for paper require an increase in variable costs to $1.80 for each book produced.
Use this information to complete parts a. through c.
A. Increase the selling price of the book.
B. Increase the font size of the print in the book.
C. Decrease the fixed costs.
D. Find different suppliers to try and lower the variable costs.
Score: 0 of 1
b. If the company continues to sell books at $11, how many books must they now sell to make a profit?
The publisher must produce and sell at least 5979 books to make a profit.
(Round up to the nearest whole book.)
Close
c. If the company wants to start making a profit at the same production level as before the cost increase from $1.30 to $1.80, how much should the publisher sell the book
for now?
In order for the company to start making a profit at the same production level as before, the publisher should sell the book for more than the break even point, which is
approximately $
(Round to the nearest cent as needed.)

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