Question

Please help, don't understand...thanks
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 ₹35,630. The variable costs will be ₹11.50 per book. The publisher will sell the finished product to bookstores at a price of ₹20.25 per book. How many books must the publisher print and sell so that the production costs will equal the money obtained from sales?

Answer 1

Answer:

4072

Step-by-step explanation:

One time fixed cost of production = Rs. 35,630

Variable Cost is Rs. 11.50 per book

Now suppose company produces x books

Total variable cost = 11.5*x =11.5x

Total cost of production = 35630 + 11.5x

Books is sold at Rs. 20.25 per book

So total money obtained by selling books = 20.25x

Since money obtained should be equal to cost of production

20.25x = 35630 + 11.5x

8.75x = 35630

x = 4072

So, No. of books to be published = 4072

Hope it helps :-)

Answer 2

Answer:

Variable costs are dependent on production output. ... Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. The total variable cost is simply the quantity of output multiplied by the variable cost per unit of output.