Problem:
Southwest U's campus book store sells course packs for $17 each, the variable cost per pack is $7, fixed costs to produce the packs are $200,000, and expected annual sales are 43,000 packs.
Required:
Question: What are the pre-tax profits from sales of course packs?
Select one:
a. $218,500
b. $257,600
c. $232,300
d. $223,100
e. $230,000
Note: Please explain comprehensively and give step by step solution.