Problem

Break-Even Analysis OHaganBooks.com also generates revenue through its o’B...

Break-Even Analysis OHaganBooks.com also generates revenue through its o’Books e-book service. Author royalties and copyright fees cost the company an average of $4 per novel, and the monthly cost of operating and maintaining the service amounts to $900 per month. The company is currently charging readers $5.50 per novel.

a. What are the associated cost, revenue, and profit functions?

b. How many novels must be sold per month in order to break even?

c. If the charge is lowered to $5.00 per novel, how many books must be sold in order to break even?

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