Question

Jordan Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $80,000 per concert. 

Required 

a. What are the total band cost and the cost per person if concert attendance is 11,000, 11,500, 12,000, 12,500, or 13,000? 

b. Is the cost of hiring the band a fixed or a variable cost? 

Complete this question by entering your answers in the tabs below. 

Required A Required B 

What are the total band cost and the cost per person if concert attendance is 11,000, 11,500, 12,000, 12,500, or 13,000? (Round "Cost per person" answers to 2 decimal places.) Number attending 11,000 11,500 12,000 12,500 13,000 Total cost of concert Cost per person

Required A Required B

 Is the cost of hiring the band a fixed or a variable cost? Since the cost of hiring a band remains at regardless of the number attending, it is a 

Answer 1

Solution

Number attending	11000	11500	12000	12500	13000
Total cost of convert	$         80,000.00	$    80,000.00	$        80,000.00	$ 80,000.00	$ 80,000.00
Cost per person	$                   7.27	$              6.96	$                   6.67	$            6.40	$            6.15

.

Since the cost of hiring a band remains at $80,000 regardless pf the number attending, it is a

Fixed cost