Fisher publishing inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $55,000. The printing costs are a flat $8,000 for set up plus $5.00 per book. The author's royalty is 5% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $9,600.  If the price to the book stores is set at $40, how many books must be sold to break even? The marketing department is forecasting sales of 4,000 books at the $40 price. What will be the net income from the projects at this volume of sales?

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