Managerial accountingthe varsity club sells souvenir items, Ask an Expert

Accounting

MANAGERIAL ACCOUNTING.

The varsity club sells souvenir items at university events at $24 each. the souvenir items cost $16 each. the club is negotiating with the university administration to sell the items in a kiosk in the university center. three rental arrangements are under consideration.

Option 1: pay rent of $2000.

Option 2: Pay rent of $1200, plus 10% of revenue

Option 3: Pay the university 25% of revenue

The club estimated that it will be able to sell 300 souvenire items during that period.

Compute the break even point in units for each of the three options.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92748865

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