Question
Exercise 6-16 Break-Even Analysis and CVP Graphing [LO6-2, LO6-4, LO6-5] The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the
Exercise 6-16 Break-Even Analysis and CVP Graphing [LO6-2, LO6-4, LO6-5]
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:
| Dinner (per person) | $ | 24 |
| Favors and program (per person) | $ | 2 |
| Band | $ | 1,400 |
| Rental of ballroom | $ | 700 |
| Professional entertainment during intermission | $ | 1,400 |
| Tickets and advertising | $ | 3,500 |
The committee members would like to charge $40 per person for the evenings activities.
Required:
1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)?
2. Assume that last year only 400 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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Performance Auditing
Authors: Shrivastava A.
1st Edition
8131316254, 978-8131316252
