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Mrs. Tisdale is going to sell Christmas tree lights for $40 a box. The lights cost Mrs. Tisdale $10 a box and any unsold lights
Mrs. Tisdale is going to sell Christmas tree lights for $40 a box. The lights cost Mrs. Tisdale $10 a box and any unsold lights can be returned for a full refund. She is planning to rent booth at the upcoming Happy Holidays Convention, which offers three options: 1. paying a foxed fee of $3,000, or 2. paying a $1,000 fee plus 10% of revenues made at the convention, or 3. paying 25% of revenues made at the convention Which of the following statements is FALSE? A. Her decision will determine the risk she faces B. Contribution margin will vary depending upon the option chosen OC. Operating income will always be the greatest for Option 3 OD. One of the options will allow Mrs. Tisdale to break even, even if she doesn't sell any lights. O E. Option 3 has the lowest operating leverage
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