SOLUTION: Your college newspaper, The Collegiate Investigator, has fixed production costs of $76 per edition and marginal printing and distribution costs of 42¢ per copy. The Collegiate Inv

Algebra.Com
Question 1179798: Your college newspaper, The Collegiate Investigator, has fixed production costs of $76 per edition and marginal printing and distribution costs of 42¢ per copy. The Collegiate Investigator sells for 62¢ per copy.
(a)
What profit (or loss) results from the sale of 500 copies of The Collegiate Investigator?
$
(b)
How many copies should be sold in order to break even?
Answer by ikleyn(52794)   (Show Source): You can put this solution on YOUR website!
.
Your college newspaper, The Collegiate Investigator, has fixed production costs of $76 per edition and marginal printing and distribution costs of 42¢ per copy. The Collegiate Investigator sells for 62¢ per copy.
(a) What profit (or loss) results from the sale of 500 copies of The Collegiate Investigator?
(b) How many copies should be sold in order to break even?
~~~~~~~~~~~~~~~~~~~~~~~~~ 

(a)  Simple arithmetic.

     The cost to produce 500 copies is  76 + 500*0.42 = 286 dollars.

     The revenue when 500 copies sold is 500*0.62 = 310 dollars.

     No loss.  The profit is 310-286 = 24 dollars.



(b)  Let n be the number of copies produced and sold.

     The cost to produce n copies is  76 + 0.42*n dollars.

     The revenue when n copies sold is 0.62*n dollars.

     The break even equation is

         76 + 0.42*n = 0.62n.


     The solution is  n =  =  =  = 380  copies.

Solved.



RELATED QUESTIONS

Your college newspaper, The Collegiate Investigator, has fixed production costs of $68... (answered by josgarithmetic)
Your college newspaper, The Collegiate Investigator, has fixed production costs of $68... (answered by josgarithmetic)
Your college newspaper, The Collegiate Investigator, has fixed production costs of $68... (answered by josgarithmetic)
Your college newspaper, The Collegiate Investigator, has fixed production costs of $76... (answered by xinxin)
A small publishing company is planning to publish a new book. The production costs will... (answered by checkley71)
A small publishing company is planning to publish a new book. The production costs will... (answered by checkley71,solver91311)
A small publishing company is planning to publish a new book. The production costs will... (answered by ankor@dixie-net.com)
A small publishing company is planning to publish a new book. The production costs will... (answered by ankor@dixie-net.com)
A small publishing company is planning to publish a new book. The production costs will... (answered by stanbon)