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Question 7 (1.875 points) Zentronics Inc. is a company that distributes kitchen stand mixers designed and manufactured by a German manufacturer. Zentronics purchases the
Question 7 (1.875 points) Zentronics Inc. is a company that distributes kitchen stand mixers designed and manufactured by a German manufacturer. Zentronics purchases the mixer at a cost of $225 plans to sell each mixer for $300 each. Zentronics Inc. plans to rent a kiosk to conduct a 1-week promotion in the Mall at the Blue Hills and is offered two alternatives for the use of the kiosk. Option 1: 15% of total revenue earned during the period. Option 2: A fixed payment of $3,600. Currently, the sales manager estimates that 70 mixers can be sold during the event. Provide the information required in (a) through (c). Input an amount/quantity without a dollar sign before the number but with a comma between thousands. DO NOT add any percentage sign or text after a number if it is already presented in the question. a) Amount of revenues at which Zentronics will earn the same operating income Ab) Based on under either option = $ current sales estimate, which of the two options should be chosen? Option: A (provide the number in the preceding blank). c) Degree of operating leverage at current sales estimate (70 mixers) for option 1=
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