Suppose that a small publisher selling to book distributors have fixed operating costs of $600,000 respectively year.?

Suppose that a small publisher selling to book distributors has fixed operating costs of $600,000 respectively year and variable costs of $3.00 per book. How tons books must the firm sell to break even if the selling prices if $6.00?


Answers:    deal in price of each book is 6.00
smaller quantity variable cost of respectively book - 3.00

contribution to fixed cost per book: 3.00

$600,000 / $3 = 200,000 books to break even

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