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 $39,480 The variable costs will be $10.25 per book. The publisher will sell the finished product to bookstores at a price of $22 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer 1

Write an equation:

39480+10.25x=22x

subtract 10.25 from both sides

39480=11.75x

divide both sides by 11.75

x=3360

So, to break even they will need to see 3360 books