Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?

the first part of the question is missing, so I looked it up:

Kai sells a small magazine full of celebrity gossip to college students for $2.05 per copy. Hiring the printing press for one day, the only fixed cost, is $431 an issue. The variable cost of printing each issue is $1.19 per copy.

before color is added, the contribution margin and break even point were:

contribution margin = $2.05 - $1.19 = $0.86

break even point in units = $431 / $0.86 = 501.16 ≈ 502 units

break even point in $ = 502 x $2.05 = $1,029.10

if Kai wants to earn $500 in profits = $931 / $0.86 = 1,082.56 ≈ 1,083, Kai must sell 1,083 copies

after color is added:

contribution margin = $2.05 - $1.19 = $0.46

break even point in units = $431 / $0.46 = 936.96 ≈ 937 units

break even point in $ = 937 x $2.05 = $1,920.85

if Kai wants to earn $500 in profits = $931 / $0.46 = 2,023.91 ≈ 2,024, Kai must sell 2,024 copies

answer utilities; more money you have to pay out ; )

false is correct i hope.

i might be