Exercise 3.33 You are the advisor of a Sheridan Achievement group in a local high school. You need to help the group make a decision about fees that must be paid to sell gardening tools at the Home and Garden Show. The group sells a set of tools for $18. The manufacturing cost (all variable) is $5 per set. The Home and Garden Show coordinator allows the following three payment options for groups exhibiting and selling at the show: 1. Pay a fixed booth fee of $5,040. 2. Pay a fee of $3,420 plus 10% of all revenue from tool sets sold at the show. 3. Pay 15% of all revenue from tool sets sold at the show. Compute the breakeven number of tool sets for each option. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 125. If an answer is zero, please enter 0. Do not leave any fields blank.) Option 1: sets Option 2: sets Option 3 sets LINK TO TEXT LINK TO TEXT LINK TO TEXT Which payment plan has the highest degree of operating leverage? Payment plan Option 2 Option 3 Option 1 LINK TO TEXT LINK TO TEXT Which payment plan has the lowest risk of loss for the organization? Payment plan LINK TO TEXT LINK TO TEXT LINK TO TEXT At what level of revenue should the group be indifferent to options 1 and 2? Indifference revenue level $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Which option should Sheridan Achievement choose, assuming that sales are expected to be 900 sets of tools? (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 125.) Option 1 profit: Option 2 profit: Option 3 profit: $ Sheridan Achievement should choose payment plan