16.5. Books-to-Go, Inc., has a recurring problem of clearing its shelves of hardcover books once the publisher releases the paperback edition. These books take up shelf space, and the sales are slow. More important, however, they tie up capital with which to buy new bestsellers. Typically, hardcover bestsellers initially re- tail for $39.95 and have sales of approximately 30 per month during the intro- ductory period. Once the paperback becomes available, hardcover sales plummet to approximately 3 per month. The mark-up on bestsellers is 50 per- cent of cost.