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JWG Company publishes Creative Crosswords. Last year the book of puzzles sold for $10 with variable operating cost per book of $8 and fixed operating costs of $40,000. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, given the following different circumstances?

a. All figures remain the same as for last year.

b. Fixed operating costs increase to $44,000; all other figures remain the same.

c. The selling price increases to $10.50; all costs remain the same as for last year.

d. Variable operating cost per book increases to $8.50; all other figures remain the same.

e. What conclusions about the operating breakeven point can be drawn from your answers?

Basic Finance, Finance

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