Answer:
720 copies must be sold to break even
Explanation:
The break even point is the point where the revenue from sales equals the total cost.
The total cost can be expressed as;
Total cost=Initial costs+(cost per book×number of books made)
where;
Initial cost=$864
Cost per book=$0.80
Assume number of books made=n
replacing;
Total cost=(864)+(0.80×n)=$864+0.8 n
Total cost=0.8 n+864...equation 1
The total revenue from the book sale can be expressed as;
Total revenue=Price per book×number of books sold
where;
Price per book=$2
number of books sold=n
replacing;
Total revenue=(2×n)=2 n...equation 2
Equate equation 1 to equation 2
0.8 n+864=2 n
2 n-0.8 n=864
1.2 n=864
n=864/1.2
n=720
720 copies must be sold to break even