Nepnep9563 Nepnep9563

09-11-2020
Business

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Darwin Inc.sells a particular textbook for $24. Variable expenses are $16 per book. At the current volume of 52,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:_____

a. $416,000
b. $832,000
c. $1, 248,000
d. $1, 664,000

Respuesta :

Ritmeks Ritmeks

10-11-2020

Answer:

$416,000

Explanation:

Darwin sells a particular book for $24

Variable expenses are $16

The current volume of book sold is 52,000 books

The first step is to calculate the unit Contribution margin

= $24-$16

= $8

Therefore the fixed expenses that is associated with the book can be calculated as follows

=52,000 × 8

= $416,000

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