A publisher is planning to produce a new textbook. The fixed costs (reviewing, editing, typesetting and so on) are ₹31.25 per book. Besides that, he also spends another ₹320000 in producing the book. The wholesale price (the amount received by the publisher) is ₹43.75 per book. How many books must the publisher sell to break even, i.e., so that the costs will equal revenues?
Answers
Dear Student,
◆ Answer -
25600 books
◆ Explaination -
Let x be no of books sold by publisher.
Total cost in making x books is -
Total cost = production cost + fixed cost per book × no of books
Total cost = 320000 + 31.25x
Total revenue recieved by the publisher is -
Total revenue = price per book × no of books
Total revenue = 43.75x
For publisher to break even -
Total cost = Total revenue
320000 + 31.25x = 43.75x
43.75x - 31.25x = 320000
12.5x = 320000
x = 320000 / 12.5
x = 25600 books
Therefore, publisher must sell 256000 books to break even.
Thanks dear...
Answer: 25600 books
Step-by-step explanation:
Let x be no of books sold by publisher.
Total cost in making x books is -
Total cost = production cost + fixed cost per book × no of books
Total cost = 320000 + 31.25x
Total revenue recieved by the publisher is -
Total revenue = price per book × no of books
Total revenue = 43.75x
For publisher to break even -
Total cost = Total revenue
320000 + 31.25x = 43.75x
43.75x - 31.25x = 320000
12.5x = 320000
x = 320000 / 12.5
x = 25600 books
Therefore, publisher must sell 256000 books to break even.