Derst Incorporated Sells a Particular Textbook for $25

question 352

Multiple Choice

Derst Incorporated sells a particular textbook for $25. Variable expenses are $13 per book. At the current volume of 42,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:

• A) $504,000
• B) $1,050,000
• C) $1,554,000
• D) $546,000

---

Definitions:

Horizontal Intercept

The point at which a curve hits the horizontal axis; it indicates the value of the x-variable when the value of the y-variable is zero.

Tacos

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling such as beef, pork, chicken, seafood, beans, vegetables, and cheese.

Budget Line

The Budget Line is a graphical representation of all possible combinations of two goods that can be purchased with a given income level and prices.

Income Increases

Refers to a rise in the amount of money earned by individuals or households, which can influence their purchasing power and consumption patterns.