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    Pre-tax profits from sales

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    Southwest U's Campus Book Store sells course packs for $15 each, the variable cost per pack is $9, fixed costs to produce the packs are $200,000, and expected annual sales are 49,000 packs. What are the pre-tax profits from sales of course packs?
    a. $108,100
    b. $94,000
    c. $109,040
    d. $81,780
    e. $98,700

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    Solution Summary

    The solution explains how to calculate the pre-tax profits from sales.