Procrastinators Anonymous (PA) is hosting their annual convention this coming ye

ID: 2612606 • 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 :

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.

attendees need to attend = ( Total Fixed Cost+ profit required)/(Ticket Price - Total Variable Cost per attendee)

attendees need to attend = (4600 + 955)/(35-14)

a)attendees need to attend = 264.52381

Solution-b

Ticket price = Total Fixed Cost/No of attendee + Total Variable Cost per attendee

Ticket price = 4600/455 + 14

Ticket price = $ 24.10989

rental of banquet 2500 Entertainment 1200 cot of meal 12 decorations 400 printing cost 500 favors per attendees 2

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