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 total $32,634 . The variable costs will be $8.75 per book. The publisher will sell the finished product to bookstores at a price of $24.50 per book. How many books must the publisher produce and sell so that the production costs will equal the money from sales?
Accepted Solution
A:
Information:
Fixed Cost = $32,634 Variable Cost = $8.75 per book. Selling Price = $24.50 per book.
Define x:
Let x be the number of books sold.
Construct Equation:
For production cost to be equal auto money from sales: ⇒ 24.5x = 32634 + 8.75x