contestada

Answer the following questions using the information​ below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the​ banquet:
1. Crestview Country Club

a. Fixed rental cost of​ $1,000
b.​ $12 per person for food
2. Tallgrass Country Club

a. Fixed rental cost of​ $3,000
b.​ $8.00 per person for food

i. Southwestern College has budgeted​ $1,800 for administrative and marketing expenses.
ii. It plans to hire a band which will cost another​ $800.
iii. Tickets are expected to be​ $30 per person.
iv. Local business supporters will donate any other items required for the event.

Respuesta :

Answer:

Crestview BEP 200 persons

Tallgrass   BEP 255 persons

Explanation:

common fixed cost:

admin and marketing           1800

band to play music               800

                                             2,600

selling price oer person $30

Break even point:

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

Crestview:

[tex]\frac{2,600 + 1,000}{30-12} = Break\: Even\: Point_{units}[/tex]

[tex]200 = Break\: Even\: Point_{units}[/tex]

Tallgrass:

[tex]\frac{2,600 + 3,000}{30-8} = Break\: Even\: Point_{units}[/tex]

[tex]254.54 = Break\: Even\: Point_{units}[/tex]