It costs a publishing company \( \$ 49,326 \) dollars to make books. The \( \$ 49,326 \) is a fixed cost or a cost that cannot change. To help the publishing company sell the books, a marketing company charges \( \$ 4.1 \) dollars for each book sold. If the company charges \( \$ 10 \) dollars per book, how many books should they sell to break even? (Round your final answer to the nearest whole number). ?
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Beyond the Answer
To break even, the publishing company needs to cover both the fixed cost of \( \$ 49,326 \) and the variable cost of \( \$ 4.1 \) per book sold. If they sell each book at \( \$ 10 \), the profit per book is calculated as follows: Profit per book = Selling price - Variable cost = \( 10 - 4.1 = 5.9 \) dollars. To find the break-even point, divide the total fixed costs by the profit per book: Break-even point = Fixed costs / Profit per book = \( 49,326 / 5.9 \approx 8,358 \) books. Thus, they need to sell approximately **8,358 books** to break even. Now, isn’t it interesting how every published book contributes not just to the creative world, but also to the bottom line of its creators? Speaking of bottom lines, ever thought about how pricing strategies can impact not just profit margins, but also consumer demand? A perfect example would be discounting: it can attract more customers but could also lead to lower overall profit if not calculated wisely!
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