Question

A textbook publisher produces a textbook for $25 per book and sells a lot of 160 to the Campus Bookstore for $50 per unit. The bookstore sells the textbook new for $75 and used for $60. This edition of the book is used for 2 years (4 semesters). The bookstore sells all textbooks that it has at the beginning each semester, and it repurchases 50% of those at the end of each semester for $30. What is the net profit for the publisher (sales - costs) over the life of this 160-unit lot of textbooks

Answer 1

$4,000

Step-by-step explanation:

The net profit of the publisher over the useful life of the 160-unit lot of textbooks is the difference between his selling price to the bookstore and the cost incurred multiplied by the number of unit.

Hence the net profit of the publisher

= 160( $50 - $25)

= 160 * $25

= $4,000