Chapter 6.4, Problem 1LC

To determine

To calculate: Number of copies must be sold for breakeven.

Answer to Problem 1LC

300 copies

Explanation of Solution

Given information: Printing a newsletter cost $\$1.50$ per copy plus $\$450$ in printer’s fees. The copies are sold for $\$3$ each.

Calculation:

Let’s assume for breakeven $x$ number of copies are required.

Now, for $x$ copies, cost price (C.P.) is $450+1.50x$ and selling price (S.P) is $3x$

Now, for breakeven, C.P is equal to S.P.

  $\therefore 450+1.50x=3x$

  $\therefore x=300$

Therefore, 300 copies must be sold for breakeven