Southeast U's campus book store sells course packs for $15.00 each,the variable cost per pack is $11.00,fixed costs for this operation are $300,000,and annual sales are 100,000 packs.The unit variable cost consists of a $4.00 royalty payment,V_R,per pack to professors plus other variable costs of V_O = $7.00.The royalty payment is negotiable.The book store's directors believe that the store should earn a profit margin of 10% on sales,and they want the store's managers to pay a royalty rate that will produce that profit margin.What royalty per pack would permit the store to earn a 10% profit margin on course packs,other things held constant? A)$2.55 B)$2.84 C)$3.15 D)$3.50 E)$3.85

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The Answer of Southeast U's campus book store sells course packs for $15.00 each,the variable cost per pack is $11.00,fixed costs for this operation are $300,000,and annual sales are 100,000 packs.The unit variable cost consists of a $4.00 royalty payment,V_R,per pack to professors plus other variable costs of V_O = $7.00.The royalty payment is negotiable.The book store's directors believe that the store should earn a profit margin of 10% on sales,and they want the store's managers to pay a royalty rate that will produce that profit margin.What royalty per pack would permit the store to earn a 10% profit margin on course packs,other things held constant? A)$2.55 B)$2.84 C)$3.15 D)$3.50 E)$3.85

Southeast U's Campus Book Store Sells Course Packs for $15