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Book Publishing You are the owner of a publishing firm and you have a new author...

  1. Book Publishing

You are the owner of a publishing firm and you have a new author that you plan to publish. It is an action/espionage novel. You believe that the author has a good book, but it is her first book and you don’t really know what the sales numbers will look like. As such, you want to do a break even analysis to find out how many books you have to sell in order to get back your initial investment.

The book will be published in paperback sized 6”x9”. The initial set up cost for setting up the press for the book is $900 dollars. After the additional cost for setting up the press, each book will cost $2.19 each to make.

  1. How much will it cost to print _ books?
    • 100 books
    • 200 books
    • 500 books
    • 1000 books
    • 2000 books
  2. What is the cost per book for each quantity?
  3. If the book retails at 9.99, How many books do you need to sell in order to break even?
    • 10.99
    • 11.99
    • 12.99
  4. Is publishing this book a good idea? Are you willing to make the investment to print the books? How many books would you print to get the project started? Why? How much would you charge?

Solutions

Expert Solution

How much will it cost to print _ books?
What is the cost per book for each quantity?

Both of these questions are answered below along with formula

If the book retails at 9.99, How many books do you need to sell in order to break even?

d.

Yes, I would publish this book. Yes, I am willing to make the investment to print the book.
I would print 116 books and sell them at 9.99 dollars.
On an average on the Amazon website, a very high rated novel is sold for $40 to $20. Since this a new author the audience may be interested to try something new at a reasonable cost.

milcah answered 1 year ago
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