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Red Carpet Catering is putting on a charity dinner for the United Way. The average selling price fora ticket is $l85. The variable cost forthe
Red Carpet Catering is putting on a charity dinner for the United Way. The average selling price fora ticket is $l85. The variable cost forthe dinner is $78. Red Carpet will also incurfixed costs such as room rental fees and DJ costs, totalling $52,000. a. What is the breakeven point in terms of tickets, for Red Carpet? b. What is the dollar sales volume the firm must achieve in order to reach its breakeven point? c. What would be the firm's profit or loss at each of the following possible ticket sales levels: 300 tickets? 500 tickets? .750 tickets? d. If variable costs increase by an extra $8 per dinnerguest. what is the new pm point in terms of tickets
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