How many books must the publisher produce and sell so that the production costs will equal the money from sales?

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 $44,731. The variable costs will be $11.25 per book. The publisher will sell the finished product to bookstores at a price of $21.50 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer 1

Revenue = R = 21.5B where B = number of books

Cost = C = 11.25B + 44,731

Break even pont is when R = C

21.5B = 11.25B + 44,731

(21.5 - 11.25)B = 44,731

10.25B = 44,731

B = 44731/10.25 = 4,364 Books