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CUCUN UL94,000 13. Candee sells candy for $20.00 a box. The manufacturing cost, all variable, is $6 a box. The company is planning on renting an exhibition booth for both display and selling purposes at the annual candy convention. The convention coordinator allows three options for each participating company. They are: 1. Paying a fixed booth fee of $10,000, plus a $10 registration fee, or 2. Paying an $8,400 fee plus 10% of revenue made at the convention, or 3. Paying 20% of revenue made at the convention. Required: a. Compute the break-even sales in boxes of each option. b. Which option should Candee choose, assuming sales are expected to be 1,000 boxes? 14. Nevada Flower Creations operates retail stores in shopping malls. The average selling price of an arrangement is $25. The average cost of each sale is $15. A new mall is opening where Nevada Flower Creations wants to locate a store, but the location manager is not sure about the rent method to accept. The mall operators offer three options for its retail store rentals as follows: 1. Paying a fixed rent of $12,500 a month, 2. Paying a base rent of $10,000 plus 8% of revenue received, or 3. Paying a base rent of $5,000 plus 20% of revenue received up to a maximum rent of $20,000. Required: a. Compute the break-even sales of each option and the monthly rent paid at break-even. b. At what sales level is the manager indifferent between Options 2 and 3? c. Beginning at zero sales, show the sales levels at which each option is preferable up to 5,000 units