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Q1) Elephant Books sells paperback books for $7 each. Variable cost per book is $5. At present annual sales of 200,000 books, publisher is just breaking even. It is evaluated that if author's royalties are decreased, variable cost per book will drop by $1. suppose author's royalties are decreased and sales remain constant; how much more money can publisher put into advertising (a fixed cost) and still break even?

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Accounting Basics, Accounting

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