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) | $7 |
Favors and program (per person) | $4 |
Band | $300 |
Rental of ballroom | $1,700 |
Professional entertainment during intermission | $4,000 |
Tickets and advertising | $600 |
The committee members would like to charge $33 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 250 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to 2 decimal places.) |
3. |
Refer to the original data ($33 ticket price per person). Prepare a CVP graph for the dinner-dance from zero tickets up to 550 tickets sold. (Use the line tool to draw three single lines (Total Sales Revenue, Fixed Expenses, Total Expenses). Each line should only contain the two endpoints. For the CVP Graph to grade correctly, you must enter the exact coordinates of each endpoint. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option.) |