Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need all 4 requirements shown in the pictures. - $7 per linear foot for ground service fees (front footage x depth) - 16% of concessions

Need all 4 requirements shown in the pictures. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
- \$7 per linear foot for ground service fees (front footage x depth) - 16% of concessions (food sales) - \$55 per 14-day parking permit - $240 for 100 -amp electrical service - \$55 per 14-day fair admittance pass (one is included with basic rental agreement) It has a food booth that requires 16 feet of front frontage and is 16 feet deep. Galaxy Concessions expects to have sales averaging $2,500 per day for each of the 14 days of the fair. It has a total of four employees who will work the fair throughout the entire 14-day period. Galaxy Concessions pays for each employee's fair admission and parking. Assume that the employee wages for the 14-day period are expected to total \$11,183 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? 2. What is the projected total fee that Galaxy Concessions will need to pay to The New Hampshire State Fair assuming it meets its expected sales level for each of the 14 days of the fair? 3. Assume that variable costs are 60% of sales revenue. (This 60% includes the 16% concession fee charged by The New Hampshire State Fair.) How much in total sales revenue is needed for Galaxy Concessions to break even? 4. Calculate Galaxy Concessions' margin of safety both in dollars and percentage. Variable Fee: Concession fees Fixed Fee: It draws nearly one million visitors over the fourteen-day period each July and August. The fair is a non-profit organization. It is self-supporting and needs, at a minimum, to break even by generating revenues through various activities. Among the sources of revenue for The New Hampshire State Fair are the revenues generated from the food vendors. A number of food vendors offer a wide variety of fair foods to attendees, including funnel cakes. gyros, cotton candy. milkshakes, and corn dogs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Primary Science Audit And Test

Authors: Jenny Byrne, Andri Christodoulou, John Sharp

4th Edition

1446282732, 978-1446282731

More Books

Students also viewed these Accounting questions