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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.

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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.
    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