Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. If an event has fixed costs of $30,000, and the price of an admission ticket is $75, with variable costs per attendee adding up

a. If an event has fixed costs of $30,000, and the price of an admission ticket is $75, with variable costs per attendee adding up to $35, how many people must attend in order for the event to break even? b. If the organization wants to do better than reaching breakeven, and in fact wants BEFORE-TAX profits of $10,000 from the event, how many people must attend it? c. Find your new answer if instead, the organization wants AFTER-TAX profits of $10,000, and the tax rate is 42%. How many people must attend under these conditions? d. What would be the margin of safety (in terms of attendees) achieved by the organization if the changes in part b were to occur? Show your calculation. e If variable cost per guest at this event suddenly increased to $39, find the new beakeven point in units (guests)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Asymmetric Cost Behavior Implications For The Credit And Financial Risk Of A Firm

Authors: Kristina Reimer

1st Edition

3658228210, 9783658228217

More Books

Students also viewed these Accounting questions

Question

Identify three ways in which rationalism differs from empiricism.

Answered: 1 week ago

Question

How much are your customers worth to you over a lifetime of buying?

Answered: 1 week ago