Break-Even Analysis Jesaki Publishing is planning for a new...

Break-Even Analysis

Jesaki Publishing is planning for a new novel, and figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $65,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced. The book will be sold to distributors for $12 each.

Answer the following questions about this venture.

Revenue Function

1. Let x be the number of books sold to distributors. The revenue function is R(x)=kx, for some value k, where R(x) is given in dollars.

Find k. Round to the nearest tenth (1 decimal place).

2. Cost Function

Let x be the number of books produced. The cost function is

C(x)=mx+b,

for some values m and b, where C(x) is given in dollars.

Round m and b to the nearest tenth (1 decimal place).

3. What ism? Round to the nearest tenth (1 decimal place).

4. What isb?Round to the nearest tenth (1 decimal place).

5. How many books must be produced and sold for Jesaki Publishing to break even?

books. Round to the nearest book.

6. What is the total cost if Jesaki Publishing breaks even?

$ . Round to the nearest dollar.

7. What is the total revenue if Jesaki Publishing breaks even?

$ . Round to the nearest dollar.

8. What is the total profit if Jesaki Publishing breaks even?

$ . Round to the nearest dollar