Question

Hello, I need help with a problem please, and thank you.

MSBC Music Company sponsors rock concerts. The customer is considering a contract to hire a band at a cost of $80,000 per concert.
Required
a. What are the total cost and the cost per person if concert attendance is $12,000, $12,500 $13,000, $13,500, or $14,000?
b. Is the cost of hiring the band a fixed or variable cost?
Complete this question by entering your answers in the tabs below.
Required A
What are the total band cost and the cost per person if concert attendance is 12,000, 12,500, 13,000, 13,500, or 14,000? (Round “Cost per person” answers to 2 decimal places.)
Number Attending 12,000 12,500 13,000 13,500 14,000.
The total cost of concert
Cost per person

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 fixed or variable cost.

Answer 1

Required A:

To calculate the total band cost, we can simply multiply the cost of hiring the band ($80,000) by the number of people attending the concert:

12,000 attendees: $80,000

12,500 attendees: $80,000

13,000 attendees: $80,000

13,500 attendees: $80,000

14,000 attendees: $80,000

To calculate the cost per person, we can divide the total band cost by the number of people attending the concert:

12,000 attendees: $6.67 per person

12,500 attendees: $6.40 per person

13,000 attendees: $6.15 per person

13,500 attendees: $5.93 per person

14,000 attendees: $5.71 per person

Required B:

Since the cost of hiring the band remains the same regardless of the number of people attending the concert, it is a fixed cost.

Step-by-step explanation: