subject
Business, 03.12.2021 22:10 itsmaddierae11

Problem information: Puffy Pillow Company sells pillows for $25.00 each. The manufacturing cost, all variable, is $10 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 rental options for each participating company. They are: Option 1. paying a fixed booth fee of $5,010 a month, or Option 2. paying an $4,000 fee plus 10% of revenue made at the convention, or Option 3. paying 20% of revenue made at the convention. Required: 1. Calculate the contribution margin per unit for each of the three options. 2. Compute the breakeven sales (dollars and units) and the monthly rent at break-even for each of the three options. 3. Calculate the degree of operating leverage at sale of 350 units for each of the three rental options. 4. At what level of revenues will Puffy Pillow Company earn the same operating income under option 1 and option 2

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 07:30, maskythegamer
Why has the free enterprise system been modified to include some government intervention?
Answers: 1
image
Business, 22.06.2019 12:10, lucyamine0
Compute the cost of not taking the following cash discounts. (use a 360-day year. do not round intermediate calculations. input your final answers as a percent rounded to 2 decimal places.)
Answers: 1
image
Business, 23.06.2019 00:50, kellimcollier8294
Mr. drucker uses a periodic review system to manage the inventory in his dry goods store. he likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. it costs $2 to place an order for sugar and costs $1 to hold a sack in inventory for a year. mr. drucker checks inventory one day and notes that he is down to 9 sacks; how much should he order?
Answers: 1
image
Business, 23.06.2019 12:10, clonetrooper099
Amanda is a certified public accountant. she wants to work as an auditor with a firm in the state of california. which accounting body must she get herself registered with? a. security and exchange commission b. financial institution regulating authority c. state board of accountancy d. government accounting standard board
Answers: 2
You know the right answer?
Problem information: Puffy Pillow Company sells pillows for $25.00 each. The manufacturing cost, all...

Questions in other subjects:

Konu
Social Studies, 28.10.2020 23:30
Konu
Mathematics, 28.10.2020 23:30