Business

Question

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 $43,654 . The variable costs will be $10.25 per book. The publisher will sell the finished product to bookstores at a price of $21.75 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

1 Answer

  • Answer:

    Let x = no. of books

    :

    Cost = 12.50x + 54150

    :

    Revenue = 25x

    :

    Rev = cost

    25x = 12.5x + 54150

    25x - 12.50x = 54150

    12.5x = 54150

    x = 54150%2F12.5

    x = 4332 books need to be sold to cover production costs

    :

    :

    Check:

    c = 12.50(4332) + 54150

    c = 54150 + 54150

    c = 108300

    :

    r = 25(4332)

    r = 108300

    I found this on another website but i'm pretty sure its correct gl

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