Juan Santiago owns a small publishing company specializing in Latin American poe
ID: 3214250 • Letter: J
Question
Juan Santiago owns a small publishing company specializing in Latin American poetry. The fixed cost to produce his poetry books is $525. His total cost to produce 1000 copies of the book is $2975. Juan sells each book to his beloved readers for $4.95 a copy. (NOTE: Assume a linear relationship between both Cost and Revenue, and assume that the total cost includes the fixed costs). a) Find a linear cost equation for Juan's publishing house. Give your answer as a linear equation in slope-intercept form. b) Find a linear revenue model for Juan's publishing house. Give your ansewr as a linear equation in slope-intercept form. c) How many books must Juan produce and sell in order to break even?Explanation / Answer
The fixed cost is $525. Therefore
Since 1000 copies cost $2975,
m 1000 +$525= 2975
m 1000=2975-525
m=2450/1000=2.45
Therefore
c(x) =2.45 x + 525.
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