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# Break-even output and Target output

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(a) Find the publisher's breakeven output and the output that would lead to a total profit of \$60,000 if, as a result of a technological breakthrough in printing, the publisher was able to lower its TFC to \$40,000.
(b) Find the publisher's breakeven output and the output that would lead to a total profit of \$60,000 if total fixed costs remained at \$100,000 but average variable costs declined to \$ 10.

#### Solution Preview

(a) Find the publisher's breakeven output and the output that would lead to a total profit of \$60,000 if, as a result of a technological breakthrough in printing, the publisher was able to lower its TFC to \$40,000.
Break-even output = Total fixed costs / ...

#### Solution Summary

(a) Find the publisher's breakeven output and the output that would lead to a total profit of \$60,000 if, as a result of a technological breakthrough in printing, the publisher was able to lower its TFC to \$40,000.
(b) Find the publisher's breakeven output and the output that would lead to a total profit of \$60,000 if total fixed costs remained at \$100,000 but average variable costs declined to \$ 10.

\$2.19