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Homework answers / question archive / Problem 1-26 Without salary With salary Known parameters: Selling price per unit Fixed cost Variable cost per unit Known parameters: Selling price per unit Fixed cost Variable cost per unit Input Data Number of units, X Input Data Number of units, X Results Total revenue Fixed cost Total variable cost Total cost Profit Results Total revenue Fixed cost Total variable cost Total cost Profit 1-26 A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variable cost will be $18, and the selling price per book will be $34
Problem 1-26 Without salary With salary Known parameters: Selling price per unit Fixed cost Variable cost per unit Known parameters: Selling price per unit Fixed cost Variable cost per unit Input Data Number of units, X Input Data Number of units, X Results Total revenue Fixed cost Total variable cost Total cost Profit Results Total revenue Fixed cost Total variable cost Total cost Profit 1-26 A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variable cost will be $18, and the selling price per book will be $34. a. How many books must be sold for this project to break even? b. Suppose the publishers wish to take a total of $40,000 in salary for this project. How many books must be sold to break even, and what is the break-even point, in dollars?