Chapter 6.4, Problem 1P

To determine

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

Answer to Problem 1P

720 copies

Explanation of Solution

Given information:

Puzzle experts initial costs are $\$864$ . Binding and packaging each book costs $\$0.80$ . The price of the book is $\$2$ .

Calculation:

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

Now, for $x$ copies, cost price (C.P.) is $864+0.80x$ and selling price (S.P) is $2x$

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

  $\therefore 864+0.80x=2x$

  $\therefore x=720$

Therefore, 720 copies must be sold for breakeven.