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Q 6 ( 7 Marks ) You are the advisor of a Junior Achievement group in a local high school. You need to help the

Q6(7 Marks) You are the advisor of a Junior 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 $20.00. The manufacturing cost (all variable) is $6 per set. The Home and Garden Show coordinator allows the following three payment options for groups exhibiting and selling at the show:
Pay a fixed booth fee of $6,000.
Pay a fee of $4,000 plus 10% of all revenue from tool sets sold at the show.
Pay 15% of all revenue from tool sets sold at the show.
Required:
A. Compute the breakeven number of tool sets for each option.
B. Which option should Junior Achievement choose, assuming sales are expected to be 1.000 sets of tools?
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