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A publisher for a new novel figures fixed costs (overhead, advances, promotion, copyediting, typesetting) at $55,000. Variables costs (printing, binding, shipping, and paper) are $1.60 per book. The publisher plans to sell the book to distributors for $11 each. How many books must be produced and sold for the publisher to break even

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facundobuzzetti

Answer:

Break-even point in units= 5,851 units

Explanation:

Giving the following information:

Fixed costs= $55,000

Unitary variable cost= $1.6

Selling price per unit= $11

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 55,000 / (11 - 1.6)

Break-even point in units= 5,851 units

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