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5.Parody Publishing sells Potter Harry ultimate collection book bundle at $40perbundle to the book retailers....

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Accounting

5.Parody Publishing sells Potter Harry ultimate collection book bundle at $40perbundle to the book retailers. The raw material and printing cost of one book bundle is $10. One time setup cost for printing the bundle is $210,000.

a. Develop a model for the total cost. Let x represent the number of book bundle.

b. Develop a model for the total profit if x number of book bundles were sold.

c. Parody Publishing has forecasted a sale of 15000bookbundles. How much profit will be earned if its forecast is accurate?

d. Compute the breakeven point.

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