PB.2 Fixed costs of the banquet unit are $600/day. An event for 100 guests has a food cost of $8.50/person, labor costs of $1.75/person and other variable costs of $1.95/person

a. Calculate the total cost per person at this event

Total Fixed Costs

Food/guest

Labor/guest

Other costs/guest

Total Variable Cost/Guest

Fixed Cost per Guest

Total Cost per Guest

b. What should the total price and total price per person be if a 30% operating income is desired?

Price Per Guest (30% income)

Total Revenue (30% income)

. Customer is a regular and does not want to pay more than $16.25/person. No other event could be booked. What are the comparative costs? Would you accept that price?.

	Function accepted at $16.25	Function not accepted
Total Revenue
Food Cost
Variable Wage
Other Variable Costs
Fixed Costs
Total Cost
Net Loss Recommendation: