Compute break even point in units for each of three options

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Reference no: EM131910199

MANAGERIAL ACCOUNTING.

The varsity club sells souvenir items at university events at $24 each. the souvenir items cost $16 each. the club is negotiating with the university administration to sell the items in a kiosk in the university center. three rental arrangements are under consideration.

Option 1: pay rent of $2000.

Option 2: Pay rent of $1200, plus 10% of revenue

Option 3: Pay the university 25% of revenue

The club estimated that it will be able to sell 300 souvenire items during that period.

Compute the break even point in units for each of the three options.

Reference no: EM131910199

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