Query Company Sells Pillows for $25

question 185

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:
1.paying a fixed booth fee of $5,010, or
2.paying an $4,000 fee plus 10% of revenue made at the convention, or
3.paying 20% of revenue made at the convention.
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?

---

Definitions:

Autonomic

Pertaining to the autonomic nervous system, which controls involuntary bodily functions like heart rate and digestion.

Relaxation Response Technique

A stress-reduction method that decreases the activity of the sympathetic nervous system, often involving deep breathing, meditation, or yoga practices.

Transcendental Meditation

A form of silent mantra meditation developed by Maharishi Mahesh Yogi.

Positive Psychology

A branch of psychology focused on enhancing human strengths, virtues, and factors that contribute to a meaningful life.