A:

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person)	$ 16
Favors and program (per person)	$ 2
Band	$ 1,250
Rental of ballroom	$ 500
Professional entertainment during intermission	$ 750
Tickets and advertising	$ 2,500

The committee members would like to charge $28 per person for the evenings activities.

Required:

1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)?

2. Assume that last year only 400 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to the nearest whole dollar amount.)

B:

Jaffre Enterprises distributes a single product whose selling price is $13 per unit and whose variable expense is $8 per unit. The companys fixed expense is $10,000 per month.

2. Calculate the companys break-even point in unit sales.