The total cost to all parties (publisher, book-store, students) over the life of the
Answer to Problem 15P
The correct option is
Explanation of Solution
Given:
Total book lot is
Number of semester is
Textbook cost for producer is
Bookstore is paying
Students are paying
Students are paying
At the end of each semester, the book store repurchases
Calculation:
Calculate the total cost for the first semester.
Substitute
Thus, the total cost for first semester is
Calculate the total cost for second semester.
In this semester, the bookstore repurchase
Substitute
Thus, the total cost for the second semester is
Calculate the total cost for the third semester.
In this semester, the bookstore repurchase
Substitute
Thus, the total cost for the third semester is
Calculate the total cost for the fourth semester.
In this semester, the bookstore repurchase
Substitute
Thus, the total cost for the fourth semester is
Calculate the total cost at the end of the fourth semester.
At the end of the fourth semester, the bookstore repurchase
Substitute
Thus, total cost for end of the fourth semester is
Now, calculate the total cost.
Substitute
Thus, total cost is
Conclusion:
Thus, the correct option is
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