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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Query 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 options for each participating company. They are:
   1.   paying a fixed booth fee of $5,010, or
   2.   paying an $4,000 fee plus 10% of revenue made at the convention, or
   3.   paying 20% 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 800 pillows?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
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#3
9 years ago
Sweet, you're welcome.
wrote...
#4
3 years ago
thank you
wrote...
#5
3 years ago
thanks
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