Anthony Flourdain ewns an intermanonal catering service that providis food and beverapen at enulusive holidays and a lighter mchedule at other vimics. One of the major events that Bourdain's ceidomers regoest is a cocktail party. He offers a alandand cockaril. party and has eatimated the cost per quent for this party as follows: The standard cocktail party lases thee bours and Bourdain hires one worker for every sis gecsts, which is one-half hour of labor per guest. These workers are bired only as meeded and are paid eely for the hours they actually work. Boundaia ordinarily charges $45 per quest. He is confident about his estimates of the conts for food and beverages and labor, but is oot as comfortable with the estimate of overhead cons. The 518.63 ovethead cost per hour was determinod by dividing total overhead expenses for the last 12 months by total labot-hours for the same period. Menthly data concerning overhead costs and labor-hours appear below- Bourdain has received a request to bid on a 120-guest fund-raising cocktail party to be given next month by: the Trump re-election committee. (The party would last the usual three hours.) He would hike to win this contrnet because the guest list for this event includes many prominent Russian leaders and undercover FBI officials that he would like to land as future clients. Bourdain is confident that these potential clients would be favorably impressed by his company's services at the fund-raising event. Required: 1. Estimate the contribution margin for a standard 120-guest cocktail party if Bourdain charges his usual price of 545 per guest. (In other words, how much would his overall income increase?) 2. How low could Bourdain bid for the fund-raising event, in terms of price per guest, and still not lose money on the event itself? 3. The individual who is organizing the fund-raising event has indicated that he has already received a bid under $42 from another intemational catering company located south of the border. Do you think Bourdain should bid below his normal $45 per guest price for the fund-raising event? Why or why not