A book publishing company has hired a marketing consultation company to develop several "scenarios" regarding possible break even point production and pricing and also a suggested retail pricing model based upon book sale projections. There are three different books of various lengths (number of pages).
The following facts are available:
1. The production cost for pages in the book is .07 per page. This includes paper and ink.
2. The plate charge per page is $2.00 per page
3. The setup charge per book (regardless of the number of pages) is $1500
4. The company is interested in production runs of 30,000 books, 40,000 books and 65,000 books
5. Books will have 400, 600 and 800 pages