The break-even point is when the costs are equal to the revenue, so we can set the two equations equal to each other:
13800 + 5.95x = 7.10x
Subtracting 5.95x from both sides, we get:
13800 = 1.15x
Dividing by 1.15, we get:
x ≈ 12000
So the publisher must sell 12000 books to break even.
To find the revenue at this point, we can plug x = 12000 into the revenue equation:
y = 7.10x
y = 7.10(12000)
y = $85,200
Therefore, the publisher's revenue will be $85,200 if they sell 12000 books.
A business is said to break even when their costs are equal to their revenues (income).
To bring a new book to market, a publisher has fixed costs (such as layout and editing) of $13,800, and per-book costs (such as printing and royalties) of $5.95. Write an equation relating y, the publisher's costs, to x, the number of books they print.
y = 13800+5.95x
When the book is sold, the publisher receives $7.10 per book. Write an equation relating y, the publisher's revenue, to x, the number of books they sell.
y = 7.10x
Assuming the publisher sells every book that they print, you can find the break-even point by combining your equations above into a system. By hand or using your calculator, solve the system, and use your solutions to answer the questions below.
How many books must the publisher sell to break even? Round your answer up to the next whole book.
books
What will the publisher's revenue be if they sell this many books? Use your rounded value, above, to answer this question.
$
1 answer