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# I have to assume I have decided to start your own Internet business to sell cookbooks online I have estimate that the annual cost of this business in...

I have to assume I have decided to start your own Internet business to sell cookbooks online I have estimate that the annual cost of this business in the first year will be as follows:

Fixed explicit costs (annually):

• Technology (Web design and maintenance)  \$5,000
• Postage and handling                                  \$1,000
• Miscellaneous                                             \$5,000
• Equipment                                                  \$4,000

TOTAL Explicit Fixed Costs (annual)                      \$16,000

Fixed implicit costs (annually):

• Lost wages from job given up (annual)          \$50,000

Variable cost = \$20 per book.

Part 1:

Assume that the equation for demand is Q = 40,000 - 500P, where

• Q = the number of cookbooks sold per year
• P = the retail price of books

I need to figure out if the chart just goes by \$5 on the side but I don't know how to figure this out.

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