14
QuizMultiple Choice

Break-Even Analysis

Question 14 • FowU - Financial Math - B

It costs a publishing company $0.55 to print one copy of a certain novel. This company paid $725,000 for the rights to the novel. If they can sell a copy of the novel for $6.75, how many copies of the novel must they sell to break even, to the nearest hundred?

Answer
A
195,300
B
116,900
C
107,400
D
99,300

Explanation

Each copy contributes $6.20 toward the rights cost after paying the $0.55 printing cost: $6.75 − $0.55 = $6.20. The company must sell $725,000 ÷ $6.20 ≈ 116,935 copies to break even, which rounds to 116,900 copies to the nearest hundred. The correct choice is 116,900.

AI-written and checked against the verified answer.

Previous
Next