Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Southeast U's campus book store sells course packs for $15.00 each, the variable cost per pack is $11.00, fixed costs for this operation are $300,000, and annual sales are 100,000 packs. The unit variable cost consists of a $4.00 royalty payment, VR, per pack to professors plus other variable costs of VO = $7.00. The royalty payment is negotiable. The book store's directors believe that the store should earn a profit margin of 10% on sales, and they want the store's managers to pay a royalty rate that will produce that profit margin. What royalty per pack would permit the store to earn a 10% profit margin on course packs, other things held constant?

a.$2.55
b.$2.84
c.$3.15
d.$3.50
e.$3.85

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946916

Have any Question? 


Related Questions in Basic Finance

1 comment on the following statement a key benefit of

1. Comment on the following statement: A key benefit of leasing is that it allows for the effective depreciation of land. 2. How would the availability of floating-rate debt rather than fixed-rate debt affect the lease-v ...

Make a list of some of the factors in your life that change

Make a list of some of the factors in your life that change from one day to the next. Possible examples include your mood, health, environment, schedule, obligations, successes and failures, and the quality of your socia ...

If you receive 15000 today and can invest it at a 5 annual

If you receive $15,000 today and can invest it at a 5% annual rate compounded continuously, what will be your ending value after 20 years?

Polychlorinated biphenyl pcb is among a group of organic

Polychlorinated biphenyl (PCB) is among a group of organic pollutants found in a variety of products, such as coolants, insulating materials, and lubricants in electrical equipment. Disposal of items containing less than ...

A recent study that examined bone strength collected data

A recent study that examined bone strength collected data from cadaveric femurs from subjects in three age groups. The data are below. Does mean bone strength differ for the three age groups? Use a 5% level of significan ...

Read one practical article of how psychology affects paying

Read one practical article of how psychology affects paying credit card debt. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "credit card debt." Summarize the main po ...

1 describe four reasons why collaborative relationships

1. Describe four reasons why collaborative relationships fail. How can these failures be avoided? 2. Distinguish between reliability and character-based trust. Why is character-based trust critical in collaborative relat ...

Norsk is a danish company that specializes in food product

Norsk is a Danish company that specializes in food product for daily consumption. It has five associated subsidiaries in the European Union and a network of distributors in North America. Recently, the company has decide ...

Following the end of world war ii in 1945 the reichsmark

Following the end of World War II in 1945, the Reichsmark, the German currency, lost so much value that a barter economy arose. During this period, many Germans used U.S. cigarettes as currency. Why might cigarettes, rat ...

Assume you will receive 2000 a year in years 1 through 5

Assume you will receive $2,000 a year in years 1 through 5, $3,000 a year in years 6 through 8, and $4,000 in year 9 with all cash flows to be received at the end of the year. If you require a return of 14 percent (%) an ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro