Mrs Tannenbaum Is Going to Sell Christmas Tree Lights for $40

Mrs. Tannenbaum is going to sell Christmas tree lights for $40 a box. The lights cost Mrs. Tannenbaum $10 a box and any unsold lights can be returned for a full refund. She is planning to rent a booth at the upcoming Happy Holidays Convention, which offers three options: Which of the following statements is FALSE?

A) Her decision will determine the risk she faces.
B) Contribution margin will vary depending upon the option chosen.
C) One of the options will allow Mrs. Tannenbaum to break even, even if she doesn't sell any lights.
D) Operating income will be the greatest for Option 3.

Correct Answer:

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