Multiple Choice
KMW Inc. sells a finance textbook for $150 each. The variable cost per book is $30 and the fixed cost per year is $30,000. The process of creating a textbook costs $150,000 and the average book has a life span of 3 years. Using straight line depreciation and a tax rate of 25%, what is the economic or present value break even number of books that must be sold given a discount rate of 12%?
A) 582
B) 667
C) 805
D) 953
Correct Answer:
Verified
Correct Answer:
Verified
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