Problem:
Southwest U's campus book store sells course packs for $16 each. The variable cost per pack is $10, and at current annual sales of 49,000 packs, the store earns $75,000 before taxes on course packs.
Required:
Question: How much are the fixed costs of producing the course packs?
- $69,840
- $61,920
- $55,440
- $72,000
- $59,040
Note: Be sure to show how you arrived at your answer.