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 $45,920. The variable costs will be $11.25 per book. The publisher will sell the finished product to bookstores at a price of $21.50 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer 1

Answer:

Number of books = 4480.

Step-by-step explanation:

Given that fixed cost = $45920

Given that variable cost = $11.25 per book

Let number of books  = x

then cost equation is given by 11.25x + 45920

Given that selling price of 1 book  = $21.50

then selling price is given by 21.50x

Now we need to find about how many books must the publisher produce and sell so that the production costs will equal the money from sales.

So let's set both equal

21.50x = 11.25x + 45920

21.50x - 11.25x = 45920

10.25x = 45920

x = 45920/10.25

x = 4480

Hence number of books = 4480.