Southwest U's Campus Book Store Sells Course Packs for $15

question 42

Multiple Choice

Southwest U's campus book store sells course packs for $15 each,the variable cost per pack is $9,fixed costs to produce the packs are $200,000,and expected annual sales are 50,000 packs.What are the pre-tax profits from sales of course packs?

• A)$ 72,900
• B)$ 81,000
• C)$ 90,000
• D)$100,000
• E)$110,000

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Definitions:

Cash Inflow

The receipt of cash or cash equivalents into a business from various sources, such as sales, financing, or investments.

Indirect Method

A cash flow statement preparation method that adjusts net income for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Accounts Payable

Liabilities owed to vendors or suppliers for goods or services received that haven't been paid for yet.

Net Income

It refers to the bottom line of a company's income statement, indicating the earnings after all deductions.