Explore BrainMass
Share

Breaking-even points for decision modeling

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variable cost will be $18, and the selling price per book will be $34.

a) How many books must be sold for this project to break even?
b) Suppose the publishers wish to take a total of $40,000 in salary for this project. How many books must be sold to break even, and what is the break-even point, in dollars?

© BrainMass Inc. brainmass.com March 22, 2019, 2:04 am ad1c9bdddf
https://brainmass.com/statistics/statistical-inference/breaking-even-points-for-decision-modeling-561696

Solution Preview

a) number of books which are sold for this project to break even = Fixed Costs / Contribution margin = ...

Solution Summary

The solution gives detailed steps on calculating the number of books for the project to break even.

$2.19