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A student association has hired a musical group for a graduation party. The cost will be a foced amount of $10.010 Required 1. Suppose 550

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A student association has hired a musical group for a graduation party. The cost will be a foced amount of $10.010 Required 1. Suppose 550 people attend the party What will be the total cost of the musical group? What will be the unit cost per person? 2. Suppose 7,700 people attend the party What will be the total cost of the musical group? What will be the unit cost per person? 3. For prediction of total costs, should the manager of the party use the unit cost in requirement 1 or the unit cost in requirement 2 ? What is the major lesson of this problem? Requirement 1. Suppose 550 people attend the party. What will be the total cost of the musical group? What wil be the unit cost per person? (Round your answerst the nearest cent as needed) The total cost of the musical group is $ The unit cost per person is 5 Requirement 2. Suppose 7,700 people attend the party What will be the total cost of the musical group? What wili be the unit cost per person? (Round your answer to the nearest cent as needed) The tolal cost of the musical group is 5 The unit cost per person is $ Requirement 3. For prediction of total costs, should the manager of the party use the unit cost in requirement 1 or the unit cost in requirement 2 ? What is the major lesson of this problem? For prediction of total costs, should the manager of the party use the unit cost in requirement 1 or the unit cost in requirement 2 ? A. The manager of the party could use both uni costs because both values are legitimate and can be used at any time B. The manager of the party should not use either unit cost because the total costs are not allected by the attendance C. The manager of the party should use the unit cost from requirement 1 becauje an overestimate of cost is befter than an underestimate D. The manager of the party should use the unit cost from requirement 2 because each guest of the party does not have to pay as much and the musical group will still play What is the major lesson of this problem? A. Changes in the number of cost driver units affect lotal variable costs and total fixed costs. B. Changes in the number of cost driver units do not affect total variable costs but affect total fxed costs C. Changes in the number of cost driver units do not affect both total variable costs and total fixed costs. D. Changes in the number of cost diver units affect total varlable costs but do not affect total fixed costs

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