Northern Press produces textbooks. Riley handles production and sales of books. Rileys compensation depends on gross margin associated with sales of book. Riley needs to know how many copies of the book to produce.

Riley has decided to produce either 27,000 29,700 or 35,100 books.

More Info Estimated sales Beginning inventory Average selling price79 per book Variable production costs 52 per book Fixed production costs S 621.000 per semester 27,000 books 0 books The fixed-cost allocation rate is based on expected sales and is therefore equal to $621.000/27 000 books $23 per book Print Done stion