Net profit for the bookstore (sales-costs) over the life of
Answer to Problem 16P
The correct answer is
Explanation of Solution
Given:
Total book lot is,
Number of semester is,
Textbook cost for producer is,
Bookstore is paying
Students are paying
Students are paying
Bookstore repurchase
Calculation:
Calculate net profit for the bookstore in the beginning of first semester:
Substitute
Thus, net profit for the first semester is,
Calculate net profit for the bookstore in the beginning of second semester.
In the beginning of this semester
Substitute
Thus, net profit for the second semester is,
Calculate net profit for the bookstore in the beginning of third semester.
In the beginning of this semester
Substitute
Thus, net profit for the third semester is
Calculate net profit for the bookstore in the third semester:
In the beginning of this semester
Substitute
Thus net profit for the fourth semester is
Calculate total net profit.
Substitute
Thus, total cost is
Conclusion:
Therefore, the correct answer is
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