l0al for each event. total cost function per event to be as follows: A and y $1,
ID: 2513801 • Letter: L
Question
l0al for each event. total cost function per event to be as follows: A and y $1,000 $9.00x Assuming that Y represents total cost and a equals the this equation to answer the following question a. What is the firm's total fixed cost per event? b. What is the firm's variable cost per guest? c. Compute total costs if 50 guests attend the event, d. Compute total costs if 100 guests attend an event. e. If the hotel charges 825.00 per guest, how many guests must mber of guests, hotel to break even at each event? f. Ifthe hotel charges$28.00 per guest, how many guests must hotel to break even at each event? g. If the hotel charges $28.00 per guest, would you advise this hote events for 50 or fewer guests? Why or why not? ylvia Jackson, a colleague of yours, ran a regression analysis lata for a local bakery, but she is unsure how to interpret the results Su iven you the following output from her Microsoft Excel spreadsheet. on sotme the results. She gement Accounting: A Business Planning ApproachExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount a) Fixed costs 1,000.00 b) Variable costs per guest 9.00 c) Total costs = 1000 + 9 * 50 1,450.00 d) Total costs = 1000 + 9 * 100 1,900.00 e) Selling price per unit 25.00 Variable cost per unit (9.00) Contribution per unit 16.00 BEP = 1000 / 16 62.50 f) Selling price per unit 28.00 Variable cost per unit (9.00) Contribution per unit 19.00 BEP = 1000 / 19 52.63 g) No since BEP is more than 50 units i.e.52.63 . So below 52.63 units company would incur loss
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