SmallScale Publishing has just commenced business and will sell only one title, ‘New to Business’. Market analysis has indicated that sales for the next 6 months should be 5 000 copies. The accountant has provided information that shows variable costs are $100 per title with fixed costs expected to be $200 000. The book is expected to sell for $150.

Required

(a) Calculate the breakeven number of books to be sold.

(b) Calculate the estimated profit for the first six months.