PROBLEM 2 Marry Frost is considering selling Do-All Software, a home-office software package, at a computer convention in Chicago. Marry knows she can purchase this software from a computer software wholesaler at $120 per package, with the privilege of returning all unsold packages and receiving a full @120 refund per package and can sell for \$200 each. She also knows that she would pay $2,000 to Computer Convention, Inc. Required: 1. Calculate break even point in unit and dollar! 2. How many units and dollar, must Marry sell to earn operating income of $1200 ? 3. How many units must Marry sell to earn a net income $960, assuming an income tax rate 40% ? 4. From requirement 2, Marry's considering placing an advertisement describing the product and its features in convention brochure. The advertisement will cost $500. She thinks the advertisement will increase sales by 10%. Should Marry's advertise? Explain your answer. 5. Marry is contemplating whether to reduce the selling price to $175. At this price, she thinks she will sell 50 units. At this quantity, the software whole-saler will reduce $5 per unit to Marry orders. Should Marry reduce the selling price? 6. Suppose Computer Convention Inc offers Marry three rental alternatives: Option A: $2000 fixed fee Option B: $800 fixed fee plus 15% of convention revenues Option C: 25% of convention Which alternatives will Marry take if 40 unit sold? Explain