Procrastinators Anonymous (PA) is hosting their annual convention this coming ye
ID: 2384121 • Letter: P
Question
Procrastinators Anonymous (PA) is hosting their annual convention this coming year in Dallas, TX. Although this is not typical of this organization, they wish to plan ahead to determine what the cost of the keynote banquet ticket should be. The ticket cost then can be included in materials that will be sent out prior to the convention.
The banquet coordinator has determined the following costs:
Rental of banquet facility
$2,500
Entertainment for banquet
$1,200
Cost of meal
$12
Decorations
$400
Printing costs
$500
Favors per attendee
$2
Requirements1:
1. Given the above information and assuming no profit will be made, what ticket price should be set if 500 procrastinators attend? If 750 people attend?
2. If a ticket price of $35 is set, how many procrastinators need to attend for PA to break even on their banquet? If the ticket price was $50? Use the roundup function to round up to the next integer (eg. 344.24 would be 345)
3. If fixed costs can be reduced by 10%, what is the breakeven point (in number of attendees) if the ticket price is $35. Use the roundup function to round up to the next integer.
4. If PA wishes to make a profit of $1,000 on the banquet and the ticket price is $35, how many procrastinators need to attend? Assume that fixed costs do not change from the initial amounts. Use the roundup function to round up to the next integer.
5. Create a CVP chart (see conference notes) for requirement 2 (ticket price of $35). Properly label all facets of the chart.
6. Using Goal Seek:
a. How many attendees need to attend for the banquet to net EXACTLY $955 in profit (assuming $35 ticket price)? Format attendees to 5 decimal places.
b. For a breakeven, what should be the EXACT ticket price (do not round) if EXACTLY 455 attendees show up at the banquet. Format the ticket price to 5 decimal places.
The banquet coordinator has determined the following costs:
Rental of banquet facility
$2,500
Entertainment for banquet
$1,200
Cost of meal
$12
Decorations
$400
Printing costs
$500
Favors per attendee
$2
Requirements1:
1. Given the above information and assuming no profit will be made, what ticket price should be set if 500 procrastinators attend? If 750 people attend?
2. If a ticket price of $35 is set, how many procrastinators need to attend for PA to break even on their banquet? If the ticket price was $50? Use the roundup function to round up to the next integer (eg. 344.24 would be 345)
3. If fixed costs can be reduced by 10%, what is the breakeven point (in number of attendees) if the ticket price is $35. Use the roundup function to round up to the next integer.
4. If PA wishes to make a profit of $1,000 on the banquet and the ticket price is $35, how many procrastinators need to attend? Assume that fixed costs do not change from the initial amounts. Use the roundup function to round up to the next integer.
5. Create a CVP chart (see conference notes) for requirement 2 (ticket price of $35). Properly label all facets of the chart.
6. Using Goal Seek:
a. How many attendees need to attend for the banquet to net EXACTLY $955 in profit (assuming $35 ticket price)? Format attendees to 5 decimal places.
b. For a breakeven, what should be the EXACT ticket price (do not round) if EXACTLY 455 attendees show up at the banquet. Format the ticket price to 5 decimal places.
Explanation / Answer
Details Amount Rental of Banquent Facility 2500 Entertainment for banquet 1,200 Decorations 400 Printing costs 500 Total Fixed Cost 4600 Favors per attendee 2 Cost of meal Per Attendee 12 Variable Cost Per Attendee 14 Ans 1 No of Attendees -500 Contribution to cover the Fixed cost Fixed cost/No of Attendees 4600/500 9.2 Sale Price to be fixed=Contribution + Variable Cost per attendee 23.2 Ans 2 No of Attendees -750 Contribution to cover the Fixed cost Fixed cost/No of Attendees 4600/750 6.13 Sale Price to be fixed=Contribution + Variable Cost per attendee 21.00 Ans 3 Revised Fixed cost with 10% reduction 4600*.90 4140 Ticket Price 35 Variable Cost 14 Contribution 21 Break even in attendees=Fixed cost/Contribution 198 Ans 4 Desired Profit 1,000.00 Fixed cost 4,600.00 Total 5,600.00 Contribution 21 No of attendees required to make the desired profit of 1000 5600/21 267
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.