Recall that last year the overall printing costs were $2.31 per calendar, totalling $19,183. Max is very disappointed to learn that printing costs for the calendars are going to be higher this year. The unit cost per calendar will be $2.45. If Max prints only the number of calendars that he projects to be sold, what do you project overall calendar profits to be this year (assuming he sells them for the same price as last year

$19,278

Explanation:

since the total costs were $19,183 and the cost per unit is $2.31, it means that last year 8,300 calendars were printed. The sales price was $5 per calendar. Last year there were 9,600 students and 7,200 calendars sold, which represents 75% (= 7,200 / 9,600) of total students.

If next year, the number of students is expected to rise to 10,080, so the number of calendars sold should be = 10,080 x 75% = 7,560 calendars.

If Max keeps the same selling price, then estimated profits should be:

(7,560 calendars x $5 per calendar) - (7,560 calendars x $2.45 per calendar) = $37,800 - $18,522 = $19,278

There are information you missed in your question, here they are below:

Max is the marketing manager at the university bookstore. He is developing his marketing plans for next school year. The bookstore is charged by the university to be a profit center for the school, therefore its important that Max manage the bookstore and price its products in a way to generate profits.

One of the most popular products the bookstore carries are academic calendars to help students keep track of key dates throughout the school year.

The university has 10,080 students registered for the upcoming Fall semester, an increase of 5% versus a year ago. Last year he sold 7,200 calendars at $5.00 each. The overall calendar sales were a bit disappointing, as he had to throw away 1,100 calendars that went unsold. The cost of creating and printing the calendars was $19,183. He'd like to estimate his sales better this year to eliminate waste and maximize his profits.

The projected overall calendar profit for this year is $19,278

Explanation:

Firstly, since enrollment grew by 5% from what was obtainable last year. We will then determine the number of people who were in the school the previous year. Let's denote that number of students by "a".

5/100 × a = number of students this year

5/100 × a = 10,800

(5a + 100a)/100 = 10,080

105a = 1008000

a = 1008000/105

a = 9,600 students (number of students in the school last year).

Since max sold 7200 calendars and the number of students that were enrolled last year were 9,600, The sales penetration or percentage of students that purchased the calendars the previous year (assuming one student bought just one)

= number of calendars sold/number of students × 100

= 7200/9600 × 100

= 75%

Since there are now 10080 students expected for the fall semester, the predicted sales penetration will be 75% of the number of students enrolled for this year's study =

75/100 × 10,080

= 7,560 (this is the number of calendars that Max projects to be sold).

So, if he prints only 7,560 calendars bearing in mind that cost of printing calendars have increased from $2.31 to $2.45, the cost of printing the 7,560 calendars =

7,560 × $2.45 = $18,522

Now, since max intends selling these calendars that he will print $5 (the same price he sold the calendars last year), the total amount that he will realize after selling the printed 7,560 calendars

= $5 × 7,560

= $37,800

Since, he will realize $37,800 after sales but the cost of printing them is $18,522 , the profit for the sale of the calendars will be:-

$37,800 - $18,522

= $19,278.

This would be the projected overall calendar profit for this year

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