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
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Question 949777: 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 total $32,379. The variable costs will be $10.75 per book. The publisher will sell the finished product to bookstores at a price of $21.50 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales? Answer by ankor@dixie-net.com(22740) (Show Source):
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 total $32,379.
The variable costs will be $10.75 per book.
The publisher will sell the finished product to bookstores at a price of $21.50 per book.
How many books must the publisher produce and sell so that the production costs will equal the money from sales?\:
:
let x = no. of books published and sold
Cost equation
C(x) = 10.75x + 32379
Revenue equation
R(x) = 21.50x
:
When Rev = cost
21.5x = 10.75x + 32379
21.5x - 10.75x = 32379
10.75x = 32379
x = 32379/10.75
x = 3012 books to break even
