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4 February, 04:18

The Junior League of Yadkinville, California, collected recipes from members and pub - lished a cookbook entitled Food for Everyone. The book will sell for $18 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 2,000 books to break even on its $4,000 investment. What is the variable cost per unit assumed in the Junior League's analysis?

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  1. 4 February, 05:34
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    Answer:The variable cost per book is $16

    Explanation:

    Sale price per book = $18

    Books need to sell = 2,000

    Total Revenue. = $36,000

    ($18*2,000)

    At Break Even Total Revenue = Cost + investment so total variable cost is ($36,000 - $4,000) = $32,000 and cost per book is $32,000:2,000 = $16 per book
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