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Break-Even Analysis A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, t
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Answer #1

Fixed Costs = $54,496
Marginal Cost = $1.60 per book
Selling Price = $11.00 per book

Contribution Margin = Selling Price - Marginal Cost
Contribution Margin = $11.00 per book - $1.60 per book
Contribution Margin = $9.40 per book

Breakeven in books = Fixed Costs / Contribution Margin
Breakeven in books = $54,496 / $9.40
Breakeven in books = 5,797

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