Harrison and Kowal Publishing company is considering publishing a paperback text

Question

Harrison and Kowal Publishing company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 4,000 copies. The publisher plans to sell the text to college and university bookstores for $20 each. What is the breakeven point? Show work please

Explanation / Answer

Solution:-

20*X = 80000+3X

=>   20*X - 3X = 80000
=> 17X = 80000

=> X = 80000/17

=> X = 4705.8824

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