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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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