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August 31, 2014

Homework Help: Economics

Posted by Matthew on Wednesday, January 21, 2009 at 8:30pm.

Hi there,
I am having trouble with this problem.Can you give me some guidance.

In planning the publication of a new engineering economics textbook, the publisher has identified the following fixed and variable costs.

Fixed Costs
Overhead- $10,000
Editing and Typesetting- $100,000
Author's Fee- $10,000

Variable Costs
Printing/binding- $25/copy on first
5000 copies
$20/copy on copies
above 5000
Author's royalty- $2/copy
Warehousing/distribution-$1/Copy

If the publisher prints 4000 copies, determine the average and marginal cost per copy. What are these costs if the publisher prints 7500 copies.

Thank you.

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