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). There are two production methods it could use. With one method, the one-time fixed costs will total $49,631, and the variable costs will be $10.25
per book. With the other method, the one-time fixed costs will total $12,209, and the variable costs will be $23.75 per book. For how many books produced will
the costs from the two methods be the same?

Answer 1

Explanation:

for both costs to be the same, the sum of the fixed and the variable costs must be the same.

so,

49631 + 10.25x = 12209 + 23.75x

37422 = 13.50x

x = 37422 / 13.5 = 2,772

the costs of both methods will be the same for 2,772 produced books.