Question

Kai sells a small magazine full of celebrity gossip to college students for $2.59 per copy. Hiring the printing press for one day, the only foxed cost, is $444 an issue. The variable cost of printing each issue is $0.95 per copy. The printer tells Kai the cost of hiring the press is to increase by $145 per day Before the increase in the cost of hiring the press, Kai was earning a profit of $500 per issue. How many copies per issue (units) was Kai selling? copies it Answerl Exit 2 3 4 5 6

Answer 1

Units Kai was selling = (Fixed cost + Profit) / (Selling price - Variable costs) = ($444 + $500) / ($2.59 - $0.95) = 576 copies