Catering company that serves food and beverages at parties and business functions. Business is seasonal, with heave scheduling during spring months and holidays and a lighter schedule at other times. On of the major events requires cocktail party. Standard cocktail party costs per guest as follows:

F&B Charges: USD 16.00

Labour (0.5hour @ USD 9.80/hr)

Overhead (0.5hour @ USD18.54/hr)

Total cost per guest USD 30.17

The standard cocktail party lasts three hours and hires one worker for every six guests. So that works out to one and half hour of labour per guest. These workers are hired only as needed and are paid only for the hours they actually works.

When bidding on cocktail parties, adds a 14% mark up to yield a price of about USD 32 per guest. Confident that the estimates of the costs of F&B and labour but not confident with the estimate for overhead. The USD 18.54 overhead costs per labour hour was determine by providing total overhead expenses for the last 12months by total labour hour for the same period. Monthly data concerning overhead costs and labour hours is as below:

Month Labour Hours Overhead Expenses, USD

Jan 2,200 42,000

Feb 2,500 46,000

Mar 2,700 47,000

Apr 3,900 51,000

May 4,200 54,000

Jun 5,200 58,000

Jul 6,200 61,000

Aug 7,200 64,000

Sept 6,700 62,000

Oct 4,200 55,000

Nov 3,800 51,000

Dec 6,200 59,000

TOTAL 55,000 650,000

Company bidding for 160guest fund raising cocktail. The party will last 3hours. What is the minimum price (break even price) to bid.