The University Bookstore is trying to determine its profits from the sales of the Principles of Marketing textbook for next fall. The TU marketing department has told them that they expect to have 160 students taking Principles of Marketing next fall, and as we know, all students purchase their required textbooks. The University Bookstore expects that 70% of the students who purchase their textbooks will purchase them from the University Bookstore.

The University Bookstore purchases the textbooks from the publisher for $70.00 per book. Shipping costs are $6.00 per case of 12 books. They have allocated their overhead costs on a per course/per semester basis, and the Principles of Marketing course needs to cover overhead costs of $400.00 next fall semester. Please answer the following questions and show your work.

a. How many Principles of Marketing textbooks does the University Bookstore expect to sell next fall?

b. What is the bookstores variable cost per book?

c. If the University Bookstores charges $140 for each Principles of Marketing textbook, what will its profits be?

d. How many books does the bookstore need to sell to break even on this course?