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Rzqust [24]
3 years ago
11

Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $10, fixed costs to produce the p

acks are $200,000, and expected annual sales are 50,000 What are the pre-tax profits from sales of course packs?A. $72,900.B. $81,000.C. $90,000.
D. $100,000.
E. $110,000.
Business
1 answer:
seropon [69]3 years ago
6 0

Answer:

Pre-tax income= $50,000

Explanation:

Giving the following information:

Selling price per unit=$15 each

Unitary variable cost= $10

Fixed costs= $200,000

Sales in units= 50,000

<u>First, we will determine the unitary contribution margin:</u>

Unitary contribution margin= 15 - 10= $5

<u>Now, the pre-tax income:</u>

Pre-tax income= 50,000*5 - 200,000

Pre-tax income= $50,000

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Answer:

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