Derst Inc. sells a particular textbook for $27. Variable expenses are $20 per book. At the current volume of 43,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: a) $860,000
b) $1,161,000
c) $1,462,000
d) $301,000

d. 301,000

Explanation:

Given that the cost per textbook is $27, we know that the addition of variable and fixed Cost gives total cost.

We will multiply variable cost per textbook of $20 with current volume of book sold per year 43,000, which gives a total variable cost of $860,000.

Also, total cost would be 43,000 multiplied with $27 , which is $1,161,000 minus the total variable cost of $860,000 equals $301,000 which is the associated fixed cost.

answer; /// (b) i believe its that is paid to state and federal taxing authorities;