KMW Inc Sells a Finance Textbook for $150 Each

question 4

Multiple Choice

KMW Inc. sells a finance textbook for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of 3 years. Using straight line depreciation and a tax rate of 25%, what is the economic or present value break even number of books that must be sold given a discount rate of 12%?

• A) 582
• B) 667
• C) 805
• D) 953

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Definitions:

Warm Body Recruitment

A hiring strategy focusing on filling positions quickly with minimal qualifications, prioritizing quantity over quality.

Volunteer Program Manager

A professional responsible for overseeing and organizing the work and activities of volunteers, ensuring effective support and utilization of their skills.

Marginal

Pertaining to changes or differences that are small or slight and often at the edge or periphery of consideration.

Targeted

Refers to actions or strategies narrowly directed towards a specific goal or audience.