Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Florida 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 Florida State Fair: (Click the icon to view the schedule of fees.) Pulsar Concessions is a vendor at the fair. (Click the icon to view additional information about Pulsar Concessions.) Read the requirements. - \$8 per linear foot for ground service fees (front footage x depth) - 20% of concessions (food sales) - $40 per 10-day parking permit - $280 for 100 -amp electrical service - $60 per 10-day fair admittance pass (one is included with basic rental agreement) 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? 2. What is the projected total fee that Pulsar Concessions will need to pay to The Florida State Fair assuming it meets its expected sales level for each of the 10 days of the fair? 3. Assume that variable costs are 80% of sales revenue. (This 80% includes the 20% concession fee charged by The Florida State Fair.) How much in total sales revenue is needed for Pulsar Concessions to break even? 4. Calculate Pulsar Concessions' margin of safety both in dollars and percentage. It draws nearly one million visitors over the ten-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 Florida State Fair are the revenues generated from the food vendors. A number of food vendors oriar a wide variety of fair foods to attendees, including funnel cakes, gys, cotton candy, milkshakes, and corn dogs. It has a food booth that requires 12 feet of front frontage and is 10 feet deep. Pulsar Concessions expects to have sales averaging $6,000 per day for each of the 10 days of the fair. It has a total of five employees who will work the fair throughout the entire 10-day period. Pulsar Concessions pays for each employee's fair admission and parking. Assume that the employee wages for the 10-day period are expected to total $6,320

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions