PLEASE ONLY ANSWER QUESTIONS 5 AND 6. I NEED TO DOUBLE CHECK MY OWN ANSWERS, I INCLUDED THE OTHER QUESTIONS IN CASE THAT INFORMATION WAS NEEDED. Thanks.

The Student Senate is sponsoring the biggest Christmas dance in the Universitys history. A ticket allows a couple to enjoy a dinner for two, attend the dance, and receive a favor to remember the event by. Tickets will be sold for couples only. Although a not-for-profit function, it must breakeven. Here are the costs involved:

Fixed costs of the event Variable Costs per couple

Lodge rental for the evening $1000 Party favor per ticket $2.00

Fantastic Five band 400 Dinner for two 16.00

Advertising costs 65 Waitress tip (13%) 2.08

Ticket printing (800 tickets) 150

Duplicate and mail flyer 35

1. Assuming all 800 tickets are sold, what price per ticket must be charged to breakeven?

2. What total revenue will sale of all 800 tickets at the price in (1) raise?

3. What is the Contribution Margin Ratio (CMR) using the costs in (1)?

4. The Senate decided to charge enough to give $1000 to charity. What price must be charged for the 800 tickets to raise $1000 above breakeven?

5. If you are cautious, and believe only 500 tickets can be sold (but still want to give the $1000 to charity), what price should you charge per ticket (sorry you still have to pay the printer for all 800 tickets)?

6. What is the DOL in (5) above (assume that $27 per ticket was charged, $1000 was to be given to charity, but that only 600 tickets were sold)?