=+4-42 KKK Alternative cost structures, uncertainty and sensitivity analysis OBJECTIVES 1, 2, 4, 5, 6 Exquisite Bouquets (EB) makes and sells flower bouquets. EB is considering opening a new store in the local mall. The mall has several empty shops and EB is unsure of the demand for its product. The mall has offered EB two alternative rental agreements. The first is a standard fixed rent agreement where EB will pay the mall $5000 per month. The second is a royalty agreement where the mall receives $10 for each bouquet sold.

EB estimates that a bouquet will sell for $50 and have a variable cost of $30 to make (including the cost of flowers and commission for the salesperson).

Required 1 What is the break-even point in units under each rental agreement?