Besides selling books, sobooks.com is generating revenue through its new online

Question

Besides selling books, sobooks.com is generating revenue through its new online publishing service.

Besides selling books, SOBooks.com is generating revenue through its new online publishing service. Readers pay a fee to download the entire text of a novel. Author royalties and copyright fees cost you an average of dollar 4 per novel, and the monthly cost of operating and maintaining the service amounts to dollar 900 per month. The company is currently charging readers dollar 5.50 per novel. What are the associated cost, revenue, and profit functions? How many novels must be sold per month in order to break even? If the charge is lowered to dollar 5.00 per novel, how many books must be sold in order to break even?

Explanation / Answer

Let x be the number of novels sold per month

1.) Cost, C(x)= 4x+900

Revenue, R(x)=5.5x

Profit=R(x)-C(X)=1.5x-900

2.) For breakeven, profit = 0

1.5x-900=0

x=600

3.) When charge is lowered to 5$, profit function=x-900

profit=0

x=900 for breakeven

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.