Question
Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event: Dinner (per person)....................................... $7
Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event:
Dinner (per person)....................................... $7
Favors and program (per person)................. $3
Band.......................................................$1,500
Tickets and advertising.............................. $700
Riverboat rental.......................................$4,800
Floorshow and strolling entertainers...... $1,000
The committee members would like to charge $30 per person for the evening's activities.
Required:
- Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend).
- Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even?
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