The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs.
Total Fixed Costs:
Copy Editing 10,000
Typesetting 70,000
Selling and Promotion 20,000
Total fixed costs: 100.000
Average Variable Costs
Printing and Binding 6
Administrative Cost 2
Sales Commissions 1
Bookstore Discounts 7
Author's royalties 4
Average variable costs $ 20.00
Project Selling Price $ 30.00
Determine the breakeven output and total sales revenues. Determine the output that would generate a total profit of 60,000 and the total sales revenue at that output level.