Problem $3$

JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $$10\mathrm{.}00$ with variable operating cost per book of $$8\mathrm{.}00$ and fixed operating costs of $$40,000.$ Fill in the blanks for each of the sceanarios below.

$($a$)$ How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if all figures remain the same as for last year?

The breakeven point will be books

The breakeven point will be books

The breakeven point will be books

The breakeven point will be books

$($e $)$ What conclusions about the operating breakeven point can be drawn from your answers? Highlight correct answer

A$.$ Increases in costs lower the operating breakeven point, while increases in price decrease it

$B.$ There is no direct relationship between cost, price and operating breakeven point.

C$.$ Increases in costs and price raise the operating breakeven point

D$.$ Increases in costs raise the operating breakeven point, while increases in price lower it$.$