A book publisher has fixed costs of $360,000 and variable costs per book of $11.00. The book sells for $27.00 per copy.

a. How many books must be sold to break even? (Roundup your answer to the next whole number.)

b. If the fixed cost increased, would the new break-even point be higher or lower?

1. Higher

2. Lower

3. It would remain the same

4. There is insufficient information to answer this question

c. If the variable cost per unit decreased, would the new break-even point be higher or lower?

1. Higher

2. Lower

3. It would remain the same

4. There is insufficient information to answer this question