Debbie’s Book Nook sells textbook material bundles for $17.00 each, the variable

Question

Debbie’s Book Nook sells textbook material bundles for $17.00 each, the variable cost per pack is $12.50, fixed costs for this operation are $325,000, and annual sales are 117,000 bundles. The unit variable cost consists of a $3.50 royalty payment, VR, per bundle to publishers plus other variable costs of VO = $9.00. The royalty payment is negotiable. The book store's directors believe that the store should earn a profit margin of 12% on sales, and they want the store's managers to pay a royalty rate that will produce that profit margin. What royalty per bundle would permit the store to earn a 12% profit margin on textbook material bundles, other things held constant?

Please be sure to show all work. Possibly in an Excel worksheet so I can understand what you did to solve the problem.

Thank you in advance!!!

Explanation / Answer

http://www.box.net/shared/point94zfo23ltjixtcm

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.