SOLUTION: A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $55,000, and variable costs (printing, paper, binding, shipp

Question 484128: A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $55,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced. If the book is sold to distibutors for $11 each, how many must be produced and sold for the publisher to break even?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Let x = no. of books published
:
A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $55,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced.
If the book is sold to distibutors for $11 each, how many must be produced and sold for the publisher to break even?
:
Cost equations
c(x) = 1.60x + 55000
Revenue equation
r(x) = 11x
:
Break even is when Revenue = cost, therefore
11x = 1.60x + 55000
11x - 1.6x = 55000
9.4x = 55000
x =
x ~ 5851 books
;
:
Prove this to your self
Rev: 11(5851) = $64,361.00
Cost: 1.6(5851) + 55000 = $64,361.60 (slight loss we can sell a portion of a book)
RELATED QUESTIONS
A publisher for a promising new novel figures fixed costs (overhead,... (answered by jorel1380)

A publisher for a promising new novel figures fixed costs (overhead, advances,... (answered by ikleyn)

1) A jazz concert brought $137,000 on the sale of 8,800 tickets. If the tickets sold for... (answered by greenestamps)

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 stanbon)