Horizon Press produces textbooks for high school accounting courses The company recently hired a new editor Jaden Green to handle production and sales of books for an introduction to accounting cours Jader's compensation depends on the gross margin associated with sales of this book Jaden needs to decide how many copies of the book to produce the following information is for the fall Semester 2017 (Click the icon to view the information) Jaden has decided to produce either 29,000, 37,700 or 43,500 books 1 More Info - X Requirements Estimated sales 20,000 books Beginning inventory O books Average selling price 61 per book Variable production costs $ 45 per book Fored production costs 5 522,000 per semester The fixed cost location rate is based on expected sales and is therefore equal to $522 000/20 000 books 518 per book 1. Calculate expected gross margini Jaden produces 29,000, 37,700, of 43,500 books (Make sure you include the production-volume variance as part of cost of goods sold ) 2. Calculate ending inventory in units and in dollars for each production level 3. Managers who are paid a bonus that is a function of gross margin may be inspired to produce a produce of demand to maximize their own bonus There are metrics to discourage managers from producing products EXCESS of demand Do you think the following metrics w o mplish this objective Show your work a incorporate a charge of 15% of the cost of the ending inventory as an expense for evaluating the man b. Include nonfinancial measures when evaluating management and rewarding performance Print Done Print Done 29,000 books 37 700 books 43 500 books