=+16-39 K Quality improvement, relevant costs, relevant revenues OBJECTIVE 3 Flagstar Conference Centre and Catering is a conference centre and restaurant facility that hosts over 300 national and international events each year attended by 50000 professionals. Due to increased competition and soaring customer expectations, the company has been forced to revisit its quality standards. In the company’s 25-year history, customer demand has never been greater for highquality products and services. Flagstar has the following budgeted fixed and variable costs for 2014:

Total Conference Centre fixed cost Variable cost per conference attendee Building and facilities $3 600 000 Management salaries $1 400 000 Customer support and service personnel $55 Food and drink $100 Conference materials $35