The Following Data Relate to a Company That Produces and Sells

question 93

Multiple Choice

The following data relate to a company that produces and sells a travel guide that is updated monthly:
$\begin{array} { | l | r | } \hline \text { Fixed costs: } & \\\hline \text { Copy editing } & \$ 6,000 \\\hline \text { Art work } & \$ 2,000 \\\hline \text { Typesetting } & \$ 72,000 \\\hline\end{array}$
$\begin{array} { | l | l | } \hline \text { Variable costs: } & \\\hline \text { Printing and binding } & \$ 3.20 \text { per copy } \\\hline \text { Bookstore discounts } & \$ 4.00 \text { per copy } \\\hline \text { Salespersons' commissions } & \$ 0.50 \text { per copy } \\\hline \text { Author's royalties } & \$ 2.00 \text { per copy }\\\hline \end{array}$ Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July.




-What is the break-even point in units?

• A) 8,247 books.
• B) 7,767 books.
• C) 7,407 books.
• D) 6,504 books.

---

Definitions:

Learning Takes Place

The process through which acquiring new, or modifying existing knowledge, behaviors, skills, values, or preferences occurs.

Reasoning

The mental process of generating conclusions, judgments, or inferences from facts or premises, involving logical thought and problem-solving skills.

Researcher

An individual who conducts systematic investigation to establish facts and reach new conclusions in a specific field of study.

Saccharin Solution

An artificial sweetener used in various food products, presented here in a dissolved form.