Question

a small publishing company is planning to publish a new book the production cost will include a one-time fixed costs such as editing and variable costs are just printing the one time fixed cost will total $33,561 the variable cost will be $12 per book to publisher will sell the finished product to book stores at a price of $20.25 per book how many books must be publisher produces cells of the production cost for legal aid money for sales ​

Answer 1

Break-even point in units= 4,068 books

Explanation:

Giving the following information:

Fixed costs= $33,561

Unitary variable cost= $12

Selling price= 20.25

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 33,561 / (20.25 - 12)

Break-even point in units= 4,068 books