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13. Please answer all requirements! I will upvote:)) The Colorado State Fair is one of the largest state fairs in the United States. View additional
13. Please answer all requirements! I will upvote:))
The Colorado State Fair is one of the largest state fairs in the United States. View additional information about the fair. Assume the following schedule of fees for food vendors at the Colorado State Fair: View the schedule of fees. Nebula Concessions is a vendor at the fair. View additional information about Nebula Concessions. Read the requirements. Requirement 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? Requirements 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? 2. What is the projected total fee that Nebula Concessions will need to pay to The Colorado State Fair assuming it meets its expected sales level for each of the 10 days of the fair? 3. Assume that variable costs are 60% of sales revenue. (This 60% includes the 16% concession fee charged by The Colorado State Fair.) How much in total sales revenue is needed for Nebula Concessions to break even? 4. Calculate Nebula Concessions' margin of safety both in dollars and percentage. Additional information about Nebula Concessions It has a food booth that requires 10 feet of front frontage and is 10 feet deep. Nebula Concessions expects to have sales averaging $6,000 per day for each of the 10 days of the fair. It has a total of five employees who will work the fair throughout the entire 10-day period. Nebula Concessions pays for each employee's fair admission and parking. Assume that the employee wages for the 10 -day period are expected to total $6,790. Additional information about the fair It draws nearly a million visitors over the 10-day period each July and August. The fair is a nonprofit organization. It is self-supporting and needs, at a minimum, to break even by generating revenues through various activities. Among the sources of revenue for The Colorado State Fair are the revenues generated from the food vendors. A number of food vendors offer a wide variety of fair foods to attendees, including funnel cakes, gyros, cotton candy, milkshakes, and corn dogs. Schedule of fees - $14 per linear foot for ground service fees (front footage x depth) - 16% of concessions (food sales) - \$20 per 10-day parking permit - $270 for 100 -amp electrical service - \$60 per 10-day fair admittance pass (one is included with basic rental agreement)Step by Step Solution
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