The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-danc

Question

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) Favors and program (per person) Band Rental of ballroom Professional entertainment during $9 $4 $600 $1,900 $2,000 intermission Tickets and advertising $700 The committee members would like to charge $39 per person for the evening's activities Required: 1. Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend). Break-even point persons

Explanation / Answer

Answer

1 ) selling expenses = 39

variable cost = 9 + 4 = 12 per persons

contribution margin per unit = 39 - 12 = 27

total fixed cost = 600 + 1900 + 2000 + 700

= 5200

break even point in units = 5200 / 27

= 192

2 ) price per unit = units * ( variable cost per unit ) + total fixed cost / no of units

= 200 * 12 + 5200 / 200

= 38 per person

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.