Chris Muss Is Going to Sell Ad-Hoc Compact Disks for $40

Chris Muss is going to sell Ad-hoc compact disks for $40 a box; one box is considered to be one unit.The disks cost Chris $10 a unit.She is planning to rent a booth at the up-coming Area Computer Show.She has three options for attending the show: 1.paying a fixed fee of $3,000;
2.paying a $1,000 fee plus 10% of her revenue made at the convention, or;
3.paying 25% of her revenue made at the convention.Which of the following statements is TRUE?

A) CVP analysis can show that the risks are identical in each case.
B) The break-even point is the identical in each case.
C) Fixed costs are inherent in all of the options.
D) One of the options will allow Chris Muss to break-even, even if she doesn't sell any disks, assuming she can return any unsold disks for a full refund.
E) Operating income per unit is the same in each case, as both selling price and costs are the same.

Correct Answer:

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