A small publishing company is planning to publish a new book. The production costs will...

Sovardipk

Sovardipk

Answered

2022-07-03

A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs and variable costs. The one-time fixed costs will total 48,192 dollars and the variable costs will be 11.75 dollars per book. The publisher will sell the finished product to bookstores at a price of 23.75 dollars per book.
How many books must the publisher produce and sell so that the production costs will equal the money from sales?

Answer & Explanation

Charlee Gentry

Charlee Gentry

Expert

2022-07-04Added 19 answers

Fixed cost = 48.192 dollars
Variable cost = 11.75 dollars per book
Selling price = 23.75 dollars per book

Thus, we have the equation:
x × s e l l i n g   p r i c e = x × v a r i a b l e   c o s t + f i x e d   c o s t, where x= number of books sold

x × 23.75 = x × 11.75 + 48.192
23.75 x 11.75 x = 48.192
x ( 23.75 11.75 ) = 48.192
x = 48.192 12
x = 4016 books

Therefore, 4016 books need to be published

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