Golden Age Retirement Planners specializes in pro- viding financial advice for p

Question

Golden Age Retirement Planners specializes in pro- viding financial advice for people planning for a comfortable retirement. The company offers semi- nars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising and other inci- dentals is about $10,000 per seminar. The cost of the materials and special gifts for each attendee is $60 per person attending the seminar. The company charges $250 per person to attend the seminar, as this seems to be competitive with other companies in the same business. How many people must attend each seminar for Golden Age to break even?

Explanation / Answer

Breakeven point:

= Fixed costs/Contribution per seminar

= ($10,000+$1,000)/($250-$60)

= $11,000/$190

= 58

Hence, 58 people must attend for break even.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.