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The Arizona State Fair is one of the largest state fairs in the United States. ( Click the icon for additional information about the fair.

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The Arizona State Fair is one of the largest state fairs in the United States.
(Click the icon for additional information about the fair.)
Assume the following schedule of fees for food vendors at the Arizona State Fair:
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(Click the icon to view the schedule of fees.)
Requirement 1. Of the fees listed in the schedule, which fees are variable with res
$12 per linear foot for ground service fees (front footage x depth)
20% of concessions (food sales)
$25 per 15-day parking permit
$300 for 100-amp electrical service
$25 per 15-day fair admittance pass (one is included with basic rental
agreement)
Requirement 2. What is the projected total fee that Cosmic Concessions will ne
Variable Fee:
Concession fees
Fixed Fee:
It draws nearly one million visitors over the fifteen-day period each July and
August. The fair is a non-profit organization. It is self-supporting and needs, at a
minimum, to break even by generating revenues through various activities. Among
the sources of revenue for The Arizona State Fair are the revenues generated from
the food vendors. A number of food vendors offer a wide variety of fair foods to
attendees, including funnel cakes, gyros, cotton candy, milkshakes, and corn dogs.
Total Fixed Fee
Total Fee to The Arizona State Fair
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It has a food booth that requires 19 feet of front frontage and is 16 feet deep.
Cosmic Concessions expects to have sales averaging $3,000 per day for each of
the 15 days of the fair. It has a total of three employees who will work the fair
throughout the entire 15-day period. Cosmic Concessions pays for each
employee's fair admission and parking. Assume that the employee wages for the
15-day period are expected to total $6,427.
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