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ExtremeBDS [4]
4 years ago
7

Southeast u's campus book store sells course packs for $15.00 each, the variable cost per pack is $11.00, fixed costs for this o

peration are $300,000, and annual sales are 100,000 packs. the unit variable cost consists of a $4.00 royalty payment, vr, per pack to professors plus other variable costs of vo = $7.00. the royalty payment is negotiable. the book store's directors believe that the store should earn a profit margin of 10% on sales, and they want the store's managers to pay a royalty rate that will produce that profit margin. what royalty per pack would permit the store to earn a 10% profit margin on course packs, other things held constant?
Business
1 answer:
lina2011 [118]4 years ago
3 0
I think its either 21 or 2 but I'm not sure
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Assault

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Answer: See explanation

Explanation:

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= $110,000 - (2% × $110,000)

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Using the net method, the revenue gotten from sales will be calculated by subtracting the rebate of 6% from the full invoice amount of $110,000. This will be:

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3 years ago
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(D) Dr Sales Returns and Allowances 150,000

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Cr Cost of goods sold 90,000

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Dr Sales Returns and Allowances 150,000

Cr Sales Refund Payable 150,000

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Read 2 more answers
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