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problem: Tigress Books sells paperback books for $7 each. The variable cost per book is $5. At current year sales of 200,000 books, the publisher is just breaking even. It is estimated that if the authors' royalties are decreased, the variable cost per book will drop by $1. Suppose authors' royalties are decreased & sales remain constant; how much more money can the publisher put into advertising (a fixed cost) & still break even?

[A] $333,333

[B] $200,000

[C] $600,000

[D] $466,667

[E] None of the above

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