Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Carol's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Carol's has been hosting 40 guests per week. Her variable costs for Party A are $600 per week. Carol has fixed costs of $7, 000 and knows that her fixed costs will not increase if she can host more "parties" each week. Carol plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Carol plans a party mix with a ratio of 1 Party B for every 2 Party C and 7 Party A for every Party B. (7:1:2). Carol plans to host 250 guests each week at parties. Based on this information please help Carol predict her potential net income to see if she can make this her new full-time income.

	Party A		Party B		Party C	Totals
Sales Mix						100%
Selling Price
Unit Variable Costs
Contribution Margin
Weighted average Contribution Margin
Fixed Costs per month
WACM Break Even Point
WACM Break-Even Point per Party
Units Sold (total guests)							250
Total Revenue per Week
Total Variable Costs Per Week
Total Fixed Costs Per Week
Total Costs per Week
Profit or Net Income Per Week

Question 5 (3 points)

Question 5 options:

Ratio data has been provided for the party guests with Carol's Crafts. Please convert this data into the sales mix percentages for the party types below:

Party A

Party B

Party C

Question 6 (4 points)

Question 6 options:

Working with weighted average contribution margin (WACM) allows for more precise calculations. Use the calculated sales mix, selling price, and variable cost values to calculate the portion of the WACM for each of the party types below:

Party A

Party B

Party C

Together these portions add, or sum (), to the WACM. Please enter the WACM for party types with Carol's Crafts.

Question 7 (1 point)

Using the WACM, what is the total breakeven party guests required for Carol?

Question 7 options:

Question 8 (6 points)

Question 8 options:

Carol plans to host 250 guests each week at parties. Based on this information please help Carol predict her potential net income to see if she can make this her new full-time income. Using the current sales mix (7:1:2) for each of the following:

Party A (# of Guests) (Revenue $)

Party B (# of Guests) ($ Revenue)

Party C (# of Guests) ($ Revenue)

Question 9 (6 points)

Question 9 options:

Using the values you have calculated, please calculate the total Variable costs per week for each of the party types below:

Party A

Party B

Party C

What is the combined sum total variable costs per week for Carol?

Please also identify the total weekly fixed costs for Carol below:

Given the various costs identified, what is the total cost per week amount?

Question 10 (2 points)

Based on this information please help Carol predict her potential net income to see if she can make this her new full-time income. If Carol requires a weekly income of $500 will she make enough profit to turn to virtual workshops as a full-time income? Please identify below the potential profit per week for Carol's Crafts and if this plan will work (yes or no)

Question 10 options: