Suppose bookworm sells one million hardcover books a day at


Question: Suppose Bookworm sells one million hardcover books a day at an average price of $39. Assume that its cost of production averages $23 a book. Bookworm has no beginning inventory, but it wants to have a three-day supply of books in ending inventory. Assume that operating expenses are $2 million per day. What is Bookworm's budgeted operating income for a (seven-day) week?

A. $92 million

B. $98 million

C. $238 million

D. $161 million

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Accounting Basics: Suppose bookworm sells one million hardcover books a day at
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