Q1: Query Company sells pillows for $75.00 each. The manufacturing cost, all variable, is $8 per pillow. The company is planning on renting an exhibition booth for both display and selling purposes at...


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Q1: Query Company sells pillows<br>for $75.00 each. The manufacturing<br>cost, all variable, is $8 per pillow. The<br>company is planning on renting an<br>exhibition booth for both display and<br>selling purposes at the annual crafts<br>and art convention. The convention<br>coordinator allows three options for<br>each participating company. They are:<br>1. paying a fixed booth fee of $3,210, or<br>2. paying an $2,000 fee plus 8% of revenue<br>made at the convention, or<br>3. paying 15% of revenue made at the<br>convention.<br>Required:<br>a. Compute the breakeven sales in pillows of<br>each option.<br>b. Which option should Query Company choose,<br>assuming sales are expected to be 650 pillows?<br>

Extracted text: Q1: Query Company sells pillows for $75.00 each. The manufacturing cost, all variable, is $8 per pillow. The company is planning on renting an exhibition booth for both display and selling purposes at the annual crafts and art convention. The convention coordinator allows three options for each participating company. They are: 1. paying a fixed booth fee of $3,210, or 2. paying an $2,000 fee plus 8% of revenue made at the convention, or 3. paying 15% of revenue made at the convention. Required: a. Compute the breakeven sales in pillows of each option. b. Which option should Query Company choose, assuming sales are expected to be 650 pillows?

Jun 02, 2022
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