Imagine a magazine which has different formats in which an advertising party can advertise, the % after each format is the price of the 1/1 page times the given %:
1/1 page: 100%, 2/1 page: 180%, 1/2 page: 80%, 1/4 page: 40%.
1/1 page: 100$, 2/1 page: 180$, 1/2 page: 80$, 1/4 page 40$.
After substracting each costs of the magazine without setting a price for the formats (let's say each format's price is 0$, no other revenues), the total costs are 100.000 dollars. I want to know what each page should be sold to the advertisers to make it break-even (no other costs). To make things more complicated (the part which I am stuck at), is the maximum amount of page per format availiable. This are the facts:
1/1 page: 12, 2/1 page: 1, 1/2 page: 6, 1/4 page: 9
So there are in total 19,25 advertising pages available. Each full advertising page is build up like this:
62,34% are 1/1 pages, 10,39% are 2/1 pages, 15,58% are 1/2 pages and 11,69% are 1/4 pages.
I need to know for each format how much it should cost to play break-even. I find it hard because of the margins each format has and the maximum amount of pages it can contain for each format.