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Morgarella [4.7K]
3 years ago
9

It costs a publishing company $50,000 to make books. The $50,000 is a fixed cost or a cost that cannot change. To help the publi

shing company sell the books, a marketing company charges 4 dollars for each book sold. If the company charges 9 dollars per book, how many books should they sell to break even?
Business
1 answer:
MariettaO [177]3 years ago
5 0

Answer:

10,000 books

Explanation:

Knowns:

Fixed Costs: $50,000

Variable Costs: $4 (price marketing company charges per book sold)

Sale price: $9 per book

We can solve break even (BE) by using the following formula:

BE = (Fixed Cost) / (Sale price-Variable costs)

BE = ($50,000) / (($9-$4)

BE = $50,000 / $5

BE = 10,000 units

I hope this helps!

-TheBusinessMan

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3 years ago
Read 2 more answers
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