HomeworkLib
Question

Big Sports University is planning to hold a fundraising banquet at one of the local country...

Big Sports University is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet:

1. Foothills Country Club
a. Fixed rental cost of $600,
b. plus $15.00 per person for food.
2. Downhill Country Club
a. Fixed rental cost of $1,080.
b. It will have to hire a caterer who charges $12.00 per person for food.

Big Sports has budgeted $900 for administrative and marketing expenses. It plans to hire a band, which will cost another $400. Tickets are expected to be $40 per person. Any other items required for the event will be donated by its local business supporters.


What is the breakeven point in tickets sold of option one?

70 tickets

170 tickets

76 tickets

85 tickets

80 tickets
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Option 1 :

Total fixed cost = Fixed rental cost + Administrative and marketing expenses + Cost of hiring band = $600 + $900 + $400 = $1900

Variable cost per person = $15

Tickets selling price per person = $40

Break even point = Total fixed cost / ( Selling price per person - Variable cost per person ) = $1900 / ( $40 - $15 ) = 76 tickets

0 0
Add a comment
Know the answer?
Add Answer to:
Big Sports University is planning to hold a fundraising banquet at one of the local country...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Southwestern College is planning to hold a fundraising banquet at one of the local country clubs....

    Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet: Option 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food Option 2: Tallgrass Country Club Fixed rental costs of $3,000 A caterer who charges $8 per person for food Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Thickets are...

  • Southwestern College is planning to hold a fundraising banquet at one of the local country clubs....

    Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet: Option 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food Option 2: Tallgrass Country Club Fixed rental costs of $3,000 A caterer who charges $8 per person for food Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Thickets are...

  • Answer the following questions using the information below: Southwestern College is planning to hold a fund...

    Answer the following questions 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: OPTION one: Crestview Country Cheb a. Fixed rental cost of $1,000 b. $12 per person for food OPTION two Tallgrass Country Club a Fixed rental cost of $3,000 b. A caterer who charges $8.00 per person for food Southwestern College has budgeted $1,800 for administrative and marketing expenses....

  • Answer the following questions using the information below: Southwestern College is planning to hold a fund...

    Answer the following questions 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: OPTION one: Crestview Country Club a. Fixed rental cost of $1,000 b. $12 per person for food OPTION two: Tallgrass Country Club a. Fixed rental cost of $3,000 b. A caterer who charges $8.00 per person for food Southwestern College has budgeted $1,800 for administrative and marketing expenses....

  • The chamber of commerce is planning it's July 4 gala ball. there are two possible venues.....

    The chamber of commerce is planning it's July 4 gala ball. there are two possible venues.. a) country golf club which has a fixed rental cost of $2000 plus a charge of $80 per person for it's own catering of meals and serving of drinks b) Townhall which has a fixed rental cost of $6600. using Townhall the chamber of commerce can hire a caterer for meals and waiters to serve drinks at $60 per person... Note: The chamber budgets...

  • Part b 4. (A) (25 marks) The Chamber of Commerce is planning its July 4 gala...

    Part b 4. (A) (25 marks) The Chamber of Commerce is planning its July 4 gala ball. There are two a. Country Golf Club, which has a fixed rental cost of $2.000 plus a charge of $80 per b. Town Hall, which has a fixed rental cost of $6,600 The Chamber of Commerce can possible venues: person for its own catering of meals and serving of drinks. hire a caterer for meals and waiters to serve drinks at $60 per...

  • Stones Manufacturing, sells a marble slab for $1500. Fixed costs are $31,000, while the variable costs...

    Stones Manufacturing, sells a marble slab for $1500. Fixed costs are $31,000, while the variable costs are $450 per slab. The company currently plans to sell 240 slabs this month. What is the margin of safety assuming 75 slabs are budgeted? $207,714.286 $31,000 $68,214.2857 $315,714.286 Answer the following questions 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT