Chapter 6.5, Problem 15PPS

To determine

To calculate the number of books to be sold at break-even

Answer to Problem 15PPS

880 Yearbooks

Explanation of Solution

Given:

Break-even point is the point at which the income equals the expenditure.

Ridgemont high school pays $13,200 for writing and research of their year book.

Printing fee per book is $25.

They sell books for $40 each.

Calculation:

Let x be the number of yearbooks sold.

Cost of one year book is $40.

Given that the income equals expenditure at break-even point,

The expenditure in making of the books equals the income that the school gets in selling the year books.

  $\begin{array}{l}\Rightarrow 13200+25x=40x\\ \Rightarrow 13200=40x-25x\\ \Rightarrow 13200=15x\\ \Rightarrow x=880\end{array}$

Conclusion:

Therefore, the number of yearbooks sold at the break-even point is 880.