Assignment: Ch 214 Exercises & Problems Assigner Score: 1 % Check My Wark (2 rem

Question

Assignment: Ch 214 Exercises & Problems Assigner Score: 1 % Check My Wark (2 remaining) Break-ven Analysis Tanto Club collected redees from members and pibkshed a cookbook ettled EatTmUp The book sell fr132 entitled Eat Tm Up. The book will sell for 132 per copy. The chaineoman of the cookbook development committee estinated that the dub needed to 6,400 books to break even on its $76,800 investment what is the variable cost per unit assumed in the GoodTaste Club's analyis? (Round your answer to the nearest whole mamber) Check My wok (2 remaining) Exercise 21 1a (Algarithmko

Explanation / Answer

Selling price per copy = $32

On selling 6,400 copies, the company break-even on $76,800 investment.

So, Fixed Cost = $76,800 / 6400 = $12

At break - even , contribution = fixed cost

So, Variable Cost = Selling price per copy - contribution per copy

= $32 - $12 = $20 per copy

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