=+A student association has hired a band and a caterer for a graduation party. The band will
Question:
=+A student association has hired a band and a caterer for a graduation party. The band will charge a fixed fee of $1000 for an evening of music, and the caterer will charge a fixed fee of $600 for the party set-up and an additional $9 per person who attends.
Snacks and soft drinks will be provided by the caterer for the duration of the party. Students attending the party will pay $5 each at the door.
Required 1 Draw a graph depicting the fixed cost, the variable cost and the total cost to the student association for different attendance levels.
2 Suppose 100 people attend the party. What will be the total cost to the student association? What will be the cost per person?
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan