The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book produced. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even? If the cost of paper rises and increases variable costs to $2.70 each, and the company continues to sell the books for $15, how many books must they sell now to make a profit? If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
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  1. The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book produced.
    1. If the book is sold to distributors for $15 each, how many must be sold for the publisher to break even?
    2. If the cost of paper rises and increases variable costs to $2.70 each, and the company continues to sell the books for $15, how many books must they sell now to make a profit?
    3. If the company wants to start making a profit at the same production level as before the cost increase, how much should they sell the book for now?
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