The publisher will sell Carlita's book to bookstores for $26.40 per copy. The retail price for customers to pay will be $48. Carlita expects to sell 225,000 copies. The publisher's expenses will be: • Printing: $3.75 per copy • Editing/Design: $27,500 • Publicity/Advertising/ Administrative: $135,150 • Carlita's Author Fee: 6.5% of the suggested retail price of every book sold Carlita suddenly announces that she wants to insert a kelp bookmark in each copy. The publisher thinks this will guarantee sales, but Carlita must agree to pay for 1/3 of the cost of the kelp. If the publisher expects the total profit on the book with the added expense to be $4,092,100, how much should Carlita expect to pay for her share of the kelp? just so i dont scroll up

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Answer:

$151,800

Step-by-step explanation:

For the publisher, the expected revenue is $26.40 per copy. For 225,000 copies, the revenue is [tex]225000\times26.40 = 5,940,000[/tex]

The expenses incurred by the publisher are as follows:

Cost of 1 print = $3.75

Cost of 225,000 prints = [tex]225000\times3.75 = 843,750[/tex]

Editing/Design = $27,500

Publicity/Advertising/Administrative = $135,150

Author's fee = 6.5% of retail price per copy for 225,000 copies = [tex]225000\times26.40\times6.5/100= 386,100[/tex]

Total cost = 843,750 + 27,500 + 135,150 + 386,100 = $1,392,500

Let the cost of kelp for copies be k.

Then the total cost = 1,392,500 + k

If the expected profit is 4,092,100, then

Revenue = total cost + profit

5,940,000 = 1,392,500 + k + 4,092,100

5,940,000 = 5,484,600 + k

k = 5,940,000 - 5,484,600 = 455,400

Since Carlita is paying [tex]\frac{1}{3}[/tex] of k, her share of the kelp =

[tex]\frac{1}{3}\times455400 = 151800[/tex]

Carlita will pay $151,800