Question 2 Valentine Company sells toys for $25 each. Variable cost per toy is $10. The company is planning on renting

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Question 2
Valentine Company sells toys for $25 each. Variable cost per toy is
$10. The company is planning on renting a promotion counter at
Mexico convention center for both display and selling purposes of
their toy. The convention coordinator allows four options for all
participant companies. They are:
1. paying a fixed promotion counter rent $5,000, 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
4. paying an advertising cost $2,000 and $1,000 for insurance
fee
Required:
a) Compute the breakeven sales in unit for each option. (9
marks)
b) Assuming sales are expected to be 800 toys, which option
should Valentine Company choose? (11 marks)