Exercise - Break-Even Analysis and CVP Graphing
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:
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Dinner (per person)
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$12
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Favors and program (per person)
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$7
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Band
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$900
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Rental of ballroom
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$2,200
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Professional entertainment during intermission
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$2,700
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Tickets and advertising
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$700
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The committee members would like to charge $45 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 orders to break even?