Problem: Fixed expenses for each new edition of the book
Copy editing $3,000.00
Art work $1,000.00
Typesetting $36,000.00
Variable expenses per copy of the book
Printing and binding $1.60
Bookstore discounts $2.00
Salespersons commission $0.25
Author Royalities $1.00
Each book sells for $10 per copy
Question 1: What would be the contribution margin for each copy of the book ?
Question 2: The contribution margin ratio for the textbook is?