Joe Doe Electronics, an on$-$line electronics and computer equipment retailer, is considering opening a $$brick and mortar$$

retail store. As a field test of this strategy, for $4$ weeks, Joe Doe will rent space at a flea market location. During that

period, he will sell the company$$s best $27$ wide screen LED monitors for $$500$ each. Joe Doe purchases the monitors

from a computer hardware wholesaler for $$350$ per unit.

The cost options for renting the flea market location, are:

$$ Option $1$ A fixed rental price of $$2,500$ per week OR

$$ Option $2$ A fixed rental charge of $$1,000$ per week plus $$50$ per unit sold.

Assume that Joe Doe Electronics will incur no other costs.

Required

$($Note: for all computations, consider the selling price and cost of the monitor$)$

A$.$ Compute the total breakeven in sales units for selling the monitors from the flea market for the $4$ weeks, under $($a$)$

Option $1$ and $($b$)$ Option $2.$

B$.$ Under each option, Option A and Option B$,$ determine the level of unit sales and total sales dollars, the electronics

store needs to generate profit of $$12,500$ for the $4$ weeks.

C$.$ At what level of unit sales would Joe Doe be indifferent to two cost options for renting the flea market space for the

$4$ weeks.

D$.$ Compute the degree of operating leverage at sales of $100$ units for each flea market cost option $($a$)$ Option $1$ and $($b$)$

Option $2.$