Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event:
|
|
| Dinner (per person) |
$15 |
| Favors and program (per person) |
$7 |
| Band |
$1,500 |
| Tickets and advertising |
$700 |
| Riverboat rental |
$1,500 |
| Floorshow and strolling entertainers |
$2,100 |
|
| The committee members would like to charge $51 per person for the evening's activities. |
| Required: |
| 1. |
Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend).
|
| Break-even point |
200 persons |
| 2. |
Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even? (Round your answer to one decimal place.)
|
| Ticket price per person to break even |
$ 45.2 |
| 3. |
Refer to the original data ($51 ticket price per person). Prepare a CVP graph for the Extravaganza from zero tickets up to 450 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. To enter the exact coordinates, double click on the point and enter the correct values of x and y.)
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