Problema Solution
The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book produced. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?
Answer provided by our tutors
profit = revenue - cost
let 'n' represent the number of books sold
cost:
2.1n + 92000
revenue:
15n
we want profit >= 0:
0<= 15n - (2.1n + 92000)
solving, we find:
n > 7131.9
the publisher must sell 7,132 books to break even