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Variable costsare the costs incurred on the factors that are changeable in the short- run, i.e., the units of these factors can be varied.These costs change with the change in the level of output. In short- run, a firm tries to cover at least its variable cost by selling its output.

Given the fixed cost, variable cost, and selling price, the break-even unit of books will be:

= 300000/ (23 – 8)

= 300000/15

= 20000 units

The break-even point is at 20000 units of books.

Assuming the increased fixed cost to be $350000, the new break-even point will be:

= 350000/ (23-8)

=350000/15

= 233333.34 units

Thus, if the fixed cost increases, the new break-even point will be higher.

Assuming the decreased variable cost to be $6, the break-even point would be:

= 300000/ (23-6)

= 300000/17

= 17647 units

Hence, when the variable cost decreases, the break-even point will be lower than before.