JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $10, which a variable operating cost of $8 per book and a fixed operating cos of $40,000.
How many books must JWG sell this year to achieve the breakeven point for the
stated operating costs if all figures remain the same as for last year?
stated operating costs if fixed operating costs increase to $44,000 and all other figures
remain the same?
stated operating costs if the selling price increases to $10.50 and all costs remain the
same as for last year?
stated operating costs if the variable operating cost per book increases to $8.50 and all
other figures remain the same?
What conclusions about the operating breakeven point can be drawn from your
answers?
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