Southwest U's campus book store sells course packs for $18 each. The variable cost per pack is $12, and at current annual sales of 47,000 packs, the store earns $75,000 before taxes on course packs. How much are the fixed costs of producing the course packs?

a. $357,000

b. $282,000

c. $771,000

d. $207,000

e. $489,000

Assume that you and your brother plan to open a business that will make and sell a newly designed type of sandal. Two robotic machines are available to make the sandals, Machine A and Machine B. The price per pair will be $30.00 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below. What is the difference between the break-even points for Machines A and B? Do not round your intermediate calculations. (Hint: Find BE_B - BE_A.)

	Machine A	Machine B
Price per pair (P)	$30.00	$30.00
Fixed costs (F)	$25,000	$100,000
Variable cost/unit (V)	$7.00	$4.00

a. 3,049

b. 2,266

c. 2,500

d. 2,778

e. 2,759