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 $44,144. The variable costs will be $9.25 per book. The publisher will sell the finished product to bookstores at a price of $24.75 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Please help.

Answer 1

3

Explanation:

• the books are 9.25 each
• multiply that by three
• 27.75 is your answer

Answer 2

2848

Explanation:

The cost function is ...

c(n) = 44144 +9.25n

The revenue function is ...

r(n) = 24.75n

You want revenue to equal cost (the break-even point).

c(n) = r(n)

44144 +9.25n = 24.75n

44144 = 15.50n . . . . . . . . . subtract 9.25n

44144/15.50 = n = 2848 . . . . . divide by the coefficient of n

The publisher must produce and sell 2848 books to make production cost equal to sales.