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(30 points) A book publishing house pays 5000 $/month for building rent, 1000 $/month for insurance expenditures, 3000 $/month for taxes, 5000 $/month for salaries
(30 points) A book publishing house pays 5000 $/month for building rent, 1000 $/month for insurance expenditures, 3000 $/month for taxes, 5000 $/month for salaries and 1000 $/month for heating and lightning. These costs are independent from the number of books to be published. Each of the book has a cost of 2 $ for the paper used, 2 $ for the translator, 2 $ for the distributor and 4 $ for the intellectual property of the author. It is decided that the sales price of each book is 15 $. (a) Which expenditures are classified as fixed costs and as variable costs? (b) Find the functions of costs and revenue. (c) Draw the figure showing monthly Profit and Loss (cost&revenues vs no. of books to be sold) (d) What is the definition of break-even point? (e) Identify break-even point on the figure. (each month how many books should be sold to reach break-even point). (f) Which region of the figure is loss region and which region is profit region
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