Devonte Price is a self-published author finishing up his seventh book. His books are sold regionally through book fairs
Posted: Thu Apr 28, 2022 2:31 pm
Devonte Price is a self-published author finishing up his
seventh book. His books are sold regionally through book fairs,
conferences, and special events. He does not sell through online
booksellers, as royalties are typically only $1 a book and the
availability online eats up in-person sales. Having an inventory of
books at the various live venues is critical to making a sale, but
with too much inventory Devonte is stuck with lots of doorstoppers.
The table below provides sales data on Books 1 through 6. Devonte
anticipates charging $28.50 for Book 7. The printing company that
he uses charges $175 to set up for each run, $8 per book to print,
and $60 per case (holds approximately 30 books) to ship. BOOK SALES
PRICE TOTAL REVENUE 1 500 $17.95 $8,975.00 2 450 $17.95 $8,077.50 3
300 $12.95 $3,885.00 4 375 $14.95 $5,606.25 5 400 $17.95 $7,180.00
6 125 $14.95 $1,868.75 7 ? ? ? a. How many books should Devonte
order of Book 7 to break even? b. Devonte thinks Book 7 will sell
at least as many as his top seller. If that is the case and he
orders that many books from the printer, what would be the net
return for the project? c. How many books should Devonte order (and
sell) if he hopes to net $20,000 on the project? d. The printer has
looked at Book 7 and thinks Devonte should opt for a deluxe package
with glossy paper and true color photography. The increased setup
fee is $500 and the per-book printing cost is $10. Shipping costs
remain the same. The printer recommends that Devonte increase the
price of the book to $32.50 to cover the extra cost of printing. If
Devonte opts for a deluxe printing of Book 7 and adjusts the price
as suggested, how many copies should he order (and sell) to break
even? How many copies would Devonte have to sell to net $20,000? e.
Devonte is worried about how the new book will sell. If he can only
sell 150 books, which version should he order (basic or deluxe)? f.
If Devonte can only sell 500 books, which version should he order
(basic or deluxe)? g. At what level of anticipated sales should
Devonte switch from the basic to the deluxe printing of Book 7?
seventh book. His books are sold regionally through book fairs,
conferences, and special events. He does not sell through online
booksellers, as royalties are typically only $1 a book and the
availability online eats up in-person sales. Having an inventory of
books at the various live venues is critical to making a sale, but
with too much inventory Devonte is stuck with lots of doorstoppers.
The table below provides sales data on Books 1 through 6. Devonte
anticipates charging $28.50 for Book 7. The printing company that
he uses charges $175 to set up for each run, $8 per book to print,
and $60 per case (holds approximately 30 books) to ship. BOOK SALES
PRICE TOTAL REVENUE 1 500 $17.95 $8,975.00 2 450 $17.95 $8,077.50 3
300 $12.95 $3,885.00 4 375 $14.95 $5,606.25 5 400 $17.95 $7,180.00
6 125 $14.95 $1,868.75 7 ? ? ? a. How many books should Devonte
order of Book 7 to break even? b. Devonte thinks Book 7 will sell
at least as many as his top seller. If that is the case and he
orders that many books from the printer, what would be the net
return for the project? c. How many books should Devonte order (and
sell) if he hopes to net $20,000 on the project? d. The printer has
looked at Book 7 and thinks Devonte should opt for a deluxe package
with glossy paper and true color photography. The increased setup
fee is $500 and the per-book printing cost is $10. Shipping costs
remain the same. The printer recommends that Devonte increase the
price of the book to $32.50 to cover the extra cost of printing. If
Devonte opts for a deluxe printing of Book 7 and adjusts the price
as suggested, how many copies should he order (and sell) to break
even? How many copies would Devonte have to sell to net $20,000? e.
Devonte is worried about how the new book will sell. If he can only
sell 150 books, which version should he order (basic or deluxe)? f.
If Devonte can only sell 500 books, which version should he order
(basic or deluxe)? g. At what level of anticipated sales should
Devonte switch from the basic to the deluxe printing of Book 7?