Question

Suppose you write a book. The printer charges $4 per book to print it, and you spend $5500 on advertising. You sell the book for $15 a copy.

A. How many copies must you sell to break even (total cost equals income from sales)?

B. What is your income (or total cost) for that many copies?

Answer 1

5500- X(15-4)= 0
5500=11X
5500/11=X
X=500 so you would have to sell 500 books at $15 dollars per book to break even. 500 books would cost $2000 to make and $5500 to advertise.

B. You would have brought in $7500 but since you had $7500 in expenses you really made no money.