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 52,056. The variable costs will be 9.75 per book. The publisher will sell the finished product to bookstores at a price of 23.25 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer 1

3856 books has to be sold so that the production costs will equal the money from sales

Solution:

Let "x" be the number of books

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 52,056

The variable costs will be 9.75 per book

Therefore,

Cost = 9.75x + 52056 ------ eqn 1

The publisher will sell the finished product to bookstores at a price of 23.25 per book

Therefore,

Revenue = 23.25x -------- eqn 2

How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Revenue = cost

$23.25x = 9.75x + 52056\\\\23.25x - 9.75x = 52056\\\\13.5x = 52056\\\\x = 3856$

3856 books has to be sold so that the production costs will equal the money from sales