=+A student association has hired a band and a caterer for a graduation party. The band will

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=+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?

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Related Book For  book-img-for-question

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

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