Problem

A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as editing) and variable costs (such as printing). There are two production methods it could use. With one method, the one-time fixed costs will total $22,857, and the variable costs will be $24.75 per book. With the other method, the one-time fixed costs will total $62,709, and the variable costs will be $11.25 per book. For how many books produced will the costs from the two methods be the same?
[1] books
×5

Answer

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Answer

Final Answer: The costs from the two methods will be the same when 2952 books are produced.

Steps

Step 1 :A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as editing) and variable costs (such as printing). There are two production methods it could use. With one method, the one-time fixed costs will total $22,857, and the variable costs will be $24.75 per book. With the other method, the one-time fixed costs will total $62,709, and the variable costs will be $11.25 per book. We need to find the number of books for which the total cost of both methods will be the same.

Step 2 :This can be done by setting the total cost equations for both methods equal to each other and solving for the number of books.

Step 3 :The total cost for the first method is given by $22,857 + $24.75 \times \text{number of books} and for the second method it is $62,709 + $11.25 \times \text{number of books}.

Step 4 :Setting these two equations equal to each other gives us: $22,857 + $24.75 \times \text{number of books} = $62,709 + $11.25 \times \text{number of books}

Step 5 :Solving this equation for the number of books gives us 2952 books.

Step 6 :Final Answer: The costs from the two methods will be the same when 2952 books are produced.

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