Author Question: An author has received an advance against royalties of 10,000 . The royalty rate is 1.00 for every ... (Read 76 times)

meagbuch · **on:** Jun 24, 2018

An author has received an advance against royalties of 10,000 . The royalty rate is 1.00 for every book sold in the United States, and 1.35 for every book sold outside the United States. Define variables for this problem and write an expression that could be used to calculate the number of books to be sold to cover the advance.

Question 2

There is a fixed cost of 50,000 to start a production process. Once the process has begun, the variable cost per unit is 25 . The revenue per unit is projected to be 45.
a. Write an expression for total cost.
b. Write an expression for total revenue.
c. Write an expression for total profit.
d. Find the break-even point.

xiazhe · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Let x1 = the number of books sold in the U.S.
Let x2 = the number of books sold outside the U.S.
10000 = 1x1 + 1.35x2

Answer to Question 2

a. C(x) = 50000 + 25x
b. R(x) = 45x
c. P(x) = 45x (50000 + 25x)
d. x = 2500