Answer the Following Question(s)using the Information Below

question 142

Multiple Choice

Answer the following question(s) using the information below.
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs.It has two options for the banquet:
Southwestern College has budgeted $1,800 for administrative and marketing expenses.It plans to hire a band which will cost another $800.Tickets are expected to be $30 per person.Local business supporters will donate any other items required for the event.
-Mrs.Tisdale is going to sell Christmas tree lights for $40 a box.The lights cost Mrs.Tisdale $10 a box and any unsold lights can be returned for a full refund.She is planning to rent a booth at the upcoming Happy Holidays Convention,which offers three options:
1.paying a fixed fee of $3,000,or
2.paying a $1,000 fee plus 10% of revenues made at the convention,or
3.paying 25% of revenues made at the convention.
Which of the following statements is FALSE?

• A)Her decision will determine the risk she faces.
• B)Contribution margin will vary depending upon the option chosen.
• C)One of the options will allow Mrs.Tisdale to break even,even if she doesn't sell any lights.
• D)Operating income will always be the greatest for Option 3.
• E)Option 3 has the lowest operating leverage.

---

Definitions:

Body Position

The arrangement or posture of the body, which can significantly affect health, comfort, and physical performance.

Movements

Actions or activities of changing position or place, or the potential for change in the physical position of the body or of objects.

Pressure

The force exerted on a surface area divided by the total area on which the force is exerted; often related to gases or liquids in scientific contexts.

Vestibular Receptors

Sensory receptors located in the inner ear that are responsible for providing the brain with information about motion, head position, and spatial orientation.