Southwest U's Campus Book Store Sells Course Packs for $16

question 23

Multiple Choice

Southwest U's campus book store sells course packs for $16 each.The variable cost per pack is $10,and at current annual sales of 50,000 packs,the store earns $75,000 before taxes on course packs.How much are the fixed costs of producing the course packs?

• A)$164,025
• B)$182,250
• C)$202,500
• D)$225,000
• E)$247,500

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Definitions:

Officer

An individual appointed by a company's board of directors who is charged with managing the day-to-day operations of the company.

Incorporation Process

The series of legal steps taken to form a corporate entity or company which is recognized by law as a separate legal entity from its owners.

Majority Vote

A voting requirement where more than half of the votes cast by individuals entitled to vote are needed to make a decision or pass a resolution.

Shareholders

Individuals or entities that own shares in a corporation, giving them the right to vote on corporate matters and receive dividends.