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?

Question

Charlee Gentry · Accepted Answer

Fixed cost = 48.192 dollarsVariable cost = 11.75 dollars per bookSelling price = 23.75 dollars per bookThus, 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 booksTherefore, 4016 books need to be published