Southwest U's campus book store sells course packs for $18 each, the variable cost per pack is $8, fixed costs to produce the packs are $200,000, and expected annual sales are 51,000 packs. What are the pre-tax profits from sales of course packs? $285,200 $310,000 $306,900 $248,000 $372,000

Southwest U's campus book store sells course packs for $18 each, the variable cost per pack is $8, fixed costs to produce the packs are $200,000, and expected annual sales are 51,000 packs.

To calculate the profit we have to use the following structure:

Sales= 18*51,000= 918,000

Variable cost= 8*51,000= (408,000)

Contribution margin= 510,000

Fixed costs= (200,000)

Net operating income= 310,000

Tundexi Tundexi · Answer 2 · 2021-12-30T13:34:44+01:00

The pre-tax profits from sales of course packs is $310,000.

Given Information

Selling Price per pack = $18

Variable Cost per pack = $8

Fixed Costs = $200,000

Sales Volume = 51,000

Contribution Margin per pack = Selling Price per pack - Variable Cost per pack

Contribution Margin per pack = $18 - $8

Contribution Margin per pack = $10

Pretax Profit = (Contribution Margin per pack * Sales Volume) - Fixed Costs

Pretax Profit = ($10.00 * 51,000) - $200,000

Pretax Profit = $510,000 - $200,000

Pretax Profit = $310,000

Hence, the pre-tax profits from sales of course packs is $310,000

Therefore, the Option B is correct.

Read more about this here

brainly.com/question/19569116