Question: Question 1 1 pts Fixed vs Variable cost preference. Bates operates a kiosk at a local mall, selling duck calls for $30 each. The variable

 Question 1 1 pts Fixed vs Variable cost preference. Bates operates

Question 1 1 pts Fixed vs Variable cost preference. Bates operates a kiosk at a local mall, selling duck calls for $30 each. The variable cost to make a duck call is $18. A new mall is opening where Bates wants to locate a new kiosk. The mall operator offers the following two options for Bates: 1. paying a fixed rent of $15,000 a month, or: 2. paying a fixed rent of $9,000 per month plus 10% of revenue earned from each duck call. The amount of monthly sales (in units) at which Bates would be indifferent as to which plan to select is: 1.900 O 2.000 1.500 0 1.600

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!