Business, 03.04.2020 15:59 jpsaad00

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1,000,000 per month that you can’t get out of. You also have a marginal printing cost of $0.35 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Round your answers to 2 decimal places. a. If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the AFC per paper? It from $ per paper to $ per paper. b. What happens to the MC per paper? . c. What happens to the minimum amount that you must charge to break even on these costs? It from $ per paper to $ per paper.

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You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory...

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