Query Company Sells Pillows for $25

question 154

Essay

Query Company sells pillows for $25.00 each. The manufacturing cost, all variable, is $10 per pillow. The company is planning on renting an exhibition booth for both display and selling purposes at the annual crafts and art convention. The convention coordinator allows three options for each participating company. They are:
Required:
a. Compute the breakeven sales in pillows of each option.
b. Which option should Query Company choose, assuming sales are expected to be 800 pillows?

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Definitions:

Decibel

A unit of measurement for sound intensity, often used to describe sound levels in various environments.

Shape Constancy

The recognition that an object's shape remains the same even when its orientation to us changes.

Retinal Disparity

This refers to the difference in the visual images that each eye perceives because of the different angles in which each eye views the world, contributing to depth perception.

Place Theory

Theory on how the inner ear registers the frequency of sound, stating that each frequency produces vibrations at a particular spot on the basilar membrane.