Assignment:
Break-even analysis. The publisher in Problem 60 finds that rising prices for paper increase the variable costs to $2.70 per book.
(A) Discuss possible strategies the company might use to deal with this increase in costs.
(B) If the company continues to sell the books for $15, how many books must they sell now to make a profit?
(C) If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?
Provide complete and step by step solution for the question and show calculations and use formulas.