22 Jul WHAT HAPPENS TO THE MINIMUM AMOUNT THAT YOU MUST CHARGE TO BREAK EVEN ON THESE COSTS?
You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory Show more You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $700000 per month and you have contractual labor obligations of $1000000 per month that you cant get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.1 per paper. If sales fall by 20 percent from 1000000 papers per month to 800000 papers per month what happens to the Average Fixed Costs per paper? Instructions: Round your answers to two decimal places. Average Fixed Costs per paper (Click to select) rises falls from $ per paper to $ per paper. What happens to the MC per paper? (Click to select) MC changes MC does not change What happens to the minimum amount that you must charge to break even on these costs? Instructions: Round your answers to two decimal places. The amount (Click to select) increases decreases from $ per paper to $ per paper. Show less
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