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.