Question: Fat x. 45 Your Turn Andre is investigating setting up a crepe stand on campus. He has two options: 1. He could rent space in
Fat x. 45 Your Turn Andre is investigating setting up a crepe stand on campus. He has two options: 1. He could rent space in the student wnion (which costs $300/month in rent and overhead) His materials and labor costs are S1 per crepe, and the sale price is $4 per crepe. 2. He could use a portable crepe maker from a friend and set up a booth outside the union. He'd have no rent or other general overhead costs (i.e., no fixed costs), but his friend would demand S1.50 per crepe sold in addition to materials and labor). Questions: (a) What is the break-even point for each of the two options? (b) An informal survey shows that Andre could expect to sell 350 crepes/month. Which option should he select
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