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Horizon Press produces textbooks for high school accounting courses. The company recently hired a new?editor,...

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Accounting

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 course. Jaden'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 available for the fall semester 2017?:

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CoursHeroTranscribedText: Estimated sales 25,000 books Beginning inventory 0 books Average selling price $ 81 per book Variable production costs $ 51 per book Fixed production costs $ 525,000 per semester The xed-cost allocation rate is based on expected sales and is therefore equal to $525,000/25.000 books = $21 per book

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