Break even point of book sales
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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 amount to 37,920 . The variable costs will be $8.75 per book. The publisher will sell the finished product to bookstores at a price of 23.75 per book. How many books must the publisher print and sell so that the production costs will equal the money obtained from sales?
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Solution Summary
This solution finds the break even number of books a publisher must sell to break even from given fixed and variable costs.
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