SOLUTION: A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as editing) and variable costs (such as printing). The on
Question 224143: A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as editing) and variable costs (such as printing). The one-time fixed costs will amount to $17,750 . The variable costs will be $12.75 per book. The publisher will sell the finished product to bookstores at a price of $19 per book. How many books must the publisher print and sell so that the production costs will equal the money obtained from sales?
You can put this solution on YOUR website! A small publishing company is planning to publish a new book.
The production costs will include one-time fixed costs (such as editing) and variable costs (such as printing).
The one-time fixed costs will amount to $17,750 .
The variable costs will be $12.75 per book.
The publisher will sell the finished product to bookstores at a price of $19 per book.
How many books must the publisher print and sell so that the production costs
will equal the money obtained from sales?
:
let n = number of books printed and sold
:
Cost equation
C = 12.75n + 17750
:
Revenue equation, (books sold at $19)
R = 19n
:
The break-even point: R = C, solve for n
therefore
19n = 12.75n + 17750
:
19n - 12.75n = 17750
:
6.25n = 17750
n =
n = 2840 books must be printed and sold
:
:
See if that is true
19 * 2840 = $53,960
(12.75 * 2840) + 17750 =$53,960
