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) $ 18 Favors and program (per person) $ 2 Band $ 2,800 Rental of ballroom $ 900 Professional entertainment during intermission $ 1,000 Tickets and advertising $ 1,300 The committee members would like to charge $35 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). 2. Assume that last year only 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even?

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person) $ 18

Favors and program (per person) $ 2

Band $ 2,800

Rental of ballroom $ 900

Professional entertainment during intermission $ 1,000

Tickets and advertising $ 1,300

The committee members would like to charge $35 per person.

1) Break-even point= fixed costs/ contribution margin

Break-evenn point= (Band+rental+professional entertainment+tickets)/[price - (dinner+favors)]

Break-even point= 6000/(35-20)= 400 individuals

2) Q= 300 P=?

300=6000/(P-20)

300*(P-20)= 6000

300P=12000

P=$40