Delaney Co. is conducting a seminar. The fixed costs of running the seminar are $80,000, and the

variable costs total $22,000 if 5,500 people attend. At this level of attendance Delaney would have net

income of $8,000. How much net income can Delaney expect if it can increase attendance to 6,000

people?

1. I know that I need to solve for Fixed Cost $ in which: PART 1: PART 2: Sales 110,000 120,000 (***Where does this come from? - start here and go down) -Variable Cost (22,000-GIVEN) (20%) --------------------------------------- ----------------- CM (88,000) (80%) 96,000 (8%) (<----- Multiply SALES by %) -Fixed Cost (80,000-GIVEN) ---------> (80,000) (carried over from the left) --------------------------------------- ----------------- NetIncome 8,000 (Given-Start Here and go UP) 16,000 (*Solve for)