KMW Inc Sells Finance Textbooks for $150 Each

question 43

Multiple Choice

KMW Inc. sells finance textbooks 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 three years. What is the economic or NPV break-even number of books that must be sold each year given a discount rate of 12 percent?

• A)156
• B)191
• C)235
• D)771

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Definitions:

Benefits-sought

Specific advantages or improvements customers are looking for in a product or service, which influence their purchasing decisions.

Service Support

Assistance and resources provided by a company to the users of its products or services.

Cutting-edge Technology

The latest and most advanced technology available in a field or industry.

Benefits-sought

Benefits-sought describes the specific value or advantage consumers look for in a product or service, driving their purchasing decisions.