It costs a publishing company $50,000 to make books. the $50,000 is a fixed cost or a cost that cannot change. to the publishing company sell the books, a marketing company charges 4 dollars for each book sold. if the company charges 9 dollars per book, how many books should they sell to break even?
10,000 books
Explanation:
Knowns:
Fixed Costs: $50,000
Variable Costs: $4 (price marketing company charges per book sold)
Sale price: $9 per book
We can solve break even (BE) by using the following formula:
BE = (Fixed Cost) / (Sale price-Variable costs)
BE = ($50,000) / (($9-$4)
BE = $50,000 / $5
BE = 10,000 units
I hope this helps!
-TheBusinessMan
answer; false pretense;
Answerless than average total cost, regardless of whether marginal cost is rising or falling;