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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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