Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started