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problem: The costs of publishing a grade school textbook can be assumed to be as follows:

Fixed expenses for each new edition of the book:

 

Copy editing

$3,000

Art work

$1,000

Typesetting

$36,000

Variable expenses per copy of the book:

 

Printing and binding

$1.60

Bookstore discounts

$2.00

Salespersons' commissions

$0.25

Author's royalties

$1.00

Each book sells for $10 per copy.

find out the unit contribution margin for each copy of the book.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M923216

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