Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $44,000. The printing costs are a flat $7000 for setup plus $8.00 per book. The author's royalty is 8% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $8200.
a.
If the price to bookstores is set at $34, how many books must be sold to break even? (Round your answer to the nearest number of books.)
b.
The marketing department is forecasting sales of 4800 books at the $34 price. What will be the net income from the project at this volume of sales?
I have no idea how to solve this question
a.
If the price to bookstores is set at $34, how many books must be sold to break even? (Round your answer to the nearest number of books.)
b.
The marketing department is forecasting sales of 4800 books at the $34 price. What will be the net income from the project at this volume of sales?
I have no idea how to solve this question