Problem

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

Besides selling books, OHaganBooks.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 $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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