Question

A small publishing company is planning to publish a new book. The production costs include one time fixed costs and variable costs. There are two production methods it could use. With one method, the one time fixed costs will total $18,673, and the variable costs will be $18.50 per book. With the other method, the one time fixed costs will total $43,969, and the variable costs will be $10 per book. For how many books produced will the costs from the two methods be the same ?

Answer 1

Answer:

2976 books

Step-by-step explanation:

Let books produced be x

Cost of First Method:

18,673 + 18.5x

Cost of Second Method:

43,969 + 10x

We equate both the cost expressions and find the value of x (the number of books for which costs are EQUAL):

18,673 + 18.5x = 43,969 + 10x

18.5x - 10x = 43,969 - 18,673

8.5x = 25,296

x = 25,296/8.5

x = 2,976

So for 2976 books produced, the two method's cost will be same