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 $53,533. The variable costs will be $12.50 per book. The publisher will sell the finished product to bookstores at a price of $24.25 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer 1

9514 1404 393

Answer:

4,556

Explanation:

Revenue from the sale of n books is ...

R = 24.25n

Production cost for n books is ...

C = 53533 +12.50n

These are equal for ...

24.25n = 53533 +12.50n

11.75n = 53533

n = 53533/11.75 = 4556

The publisher must produce 4556 books so sales will equal production cost.