M1_IND2. A start-up publishing company estimates that the fixed costs of its first major project will be $175,000, the variable cost will be $20 per book, and the selling price per book will be $28.
a) How many books must be sold to break even?
b) What is the total revenue at the break-even point?
c) If the publishers take a total of $60,000 in salary (what cost is affected?) - how many books must be sold to break even?
d) What is the total revenue for the break-even volume when the publishers take a total of $60,000 in salary?