SOLUTION: The neighborhood bookstore sells novels for $6.95 per unit. The cost to purchase one book is $3.95. The store has fixed costs per month of $1800. The store estimates that it can se
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-> SOLUTION: The neighborhood bookstore sells novels for $6.95 per unit. The cost to purchase one book is $3.95. The store has fixed costs per month of $1800. The store estimates that it can se
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Question 1136386: The neighborhood bookstore sells novels for $6.95 per unit. The cost to purchase one book is $3.95. The store has fixed costs per month of $1800. The store estimates that it can sell 1000 books every month. How many books does it need to sell to break even?
You can put this solution on YOUR website! The store makes $3 per book
The fixed costs are $1800 per month.
It has to sell 600 books to break even. That is the simplest way.
Costs are C=1800+3.95 x, where x are number of books
Revenue is R=6.95 x
Those two are equal at break even
so 6.95x=1800+3.95 x, and that gives 600 for x.
