A puzzle wrote a new sudoku puzzle book.His initial costs are $864. Binding and packaging each book costs $.80.. The price of the book it $2. How many copies must be sold to break even.

Accepted Solution

Answer:720 copies must be sold to break evenStep-by-step explanation:The break even point is the point where the revenue from sales equals the total cost.The total cost can be expressed as;Total cost=Initial costs+(cost per book×number of books made)where;Initial cost=$864Cost per book=$0.80Assume number of books made=nreplacing;Total cost=(864)+(0.80×n)=$864+0.8 nTotal cost=0.8 n+864...equation 1The total revenue from the book sale can be expressed as;Total revenue=Price per book×number of books soldwhere;Price per book=$2number of books sold=nreplacing;Total revenue=(2×n)=2 n...equation 2Equate equation 1 to equation 20.8 n+864=2 n2 n-0.8 n=8641.2 n=864n=864/1.2n=720720 copies must be sold to break even