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Chris Muss is going to sell Ad-hoc compact disks for $40 a box; one box is considered to be one unit. The disks cost Chris
Chris Muss is going to sell Ad-hoc compact disks for $40 a box; one box is considered to be one unit. The disks cost Chris $10 a unit. She is planning to rent a booth at the up-coming Area Computer Show. She has three options for attending the show: 1. paying a fixed fee of $3,000; 2. paying a $1,000 fee plus 10% of her revenue made at the convention, or; 3. paying 25% of her revenue made at the convention. Which of the following statements is true? CVP analysis can show that the risks are identical in each case. The break-even point is the identical in each case. One of the options will allow Chris Muss to break-even, even if she doesn't sell any disks, assuming she can return any unsold disks for a full refund. Fixed costs are inherent in all of the options. Operating income per unit is the same in each case, as both selling price and costs are the same
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