Question 1179798
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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?
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(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 = {{{76/(0.62-0.42)}}} = {{{76/0.2}}} = {{{760/2}}} = 380  copies.
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Solved.