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Provided is the following known data regarding a scavenger hunt event: The event coordinator is paid $100 for organizing the event whether it goes on

Provided is the following known data regarding a scavenger hunt event:

  • The event coordinator is paid $100 for organizing the event whether it goes on or not.
  • The program runs from 6:00 p.m. to 9:00 p.m.
  • Limo rental costs $250 per team of four participants. This fee is nonrefundable.
  • A flat rate of $50 is charged for overhead costs.
  • The supervisor is on-site during the event and is paid $12 per hour. He will arrive 30 minutes before the teams and will stay 30 minutes after the event.
  • The program includes a 5 percent contingency fee.
  • Each team needs two packs of Polaroid film at $17 each.
  • Each team will require $5 in miscellaneous supplies (i.e., pens, paper, and so forth).
  • This popular event has a maximum of 10 teams and always has a waiting list.

Complete the following tasks, filling in the chart below and submitting the chart:

  • Determine the fixed and variable costs.
  • Determine the price for the program per team using a break-even analysis.
  • Once you have completed tasks 1 and 2, recalculate the price so that you make a 20 percent profit.

Item

Unit 1 (number or hours)

Unit 2 (number or hours)

Price per unit

Subtotals

Fixed costs

Coordinator

$

$

Limo rental

$

$

Overhead

$

$

Total fixed costs

$

Variable costs

Supervisor

$

$

Supplies: film

$

$

Supplies: miscellaneous

$

$

Total variable costs

$

Total costs (fixed + variable)

$

Contingency

%

$

Break-even cost per team with contingency

Profit

%

Break-even cost

$

Total with subsidy

$

$

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