A student association has hired a musical group for a graduation party. The cost will be a

Question:

A student association has hired a musical group for a graduation party. The cost will be a fixed amount of $4,800.
REQUIRED
1. Suppose 500 people attend the party. What will be the total cost of the musical group; the unit cost per person?
2. Suppose 2,000 people attend. What will be the total cost of the musical group; the unit cost per person?
3. For prediction of total costs, should the manager of the party use the unit cost in requirement 1; the unit cost in requirement 2? What is the major lesson of this problem?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133392883

6th Canadian edition

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

Question Posted: