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Option 1: He needs to rent a kiosk cart in the mall which will cost $600 a month. In addition, there are marketing costs for

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Option 1: He needs to rent a kiosk cart in the mall which will cost $600 a month. In addition, there are marketing costs for signage and business cards, which have an initial cost of $1,200. Zach will also need to create a website, Instagram page and Facebook ads that will cost him $200 a month. To start the business, his tools would cost $500. The total repairs would include a flat rate of $30 for an assessment and another $100 to fix the phone. The supplies to complete each phone would cost $40. Option 2: Zach needs a way to source old phones from people who no longer need them. He would pay $50 for a used phone in decent condition and then refurbish it for $40. He would subsequently sell the device for $200. Zach would no longer need to set up a kiosk in the mall, but rather manage everything online. This means that he would need to create a website, Instagram page and Facebook ads which would cost him $200 a month. He would also need to spend $500 on tools to begin. Based on the information provided, please complete the following: b) Complete a breakeven analysis in units to assess option 1 . Show your calculation ( 2 marks) c) Complete a breakeven analysis in units to assess option 2. Show your calculation ( 2 marks) d) Based on your two calculations and any other relevant information, which is the better option for Zach. Explain your reason(s) why it is the better option. (2 marks)

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