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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). The one-time fixed costs will amount to $50,924 . The variable costs will be $9.75 per book. The publisher will sell the finished product to bookstores at a price of $24.25 per book. How many books must the publisher print and sell so that the production costs will equal the money obtained from sales?

Breakeven number of units formula:

Fixed costs / ( selling price per unit – var costs per unit)

$50,924 / ( $24.25 – $9.75) = 3512 books to print and sell to breakeven.

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