Question
[The following information applies to the questions displayed below.] The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following
[The following information applies to the questions displayed below.]
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:
Dinner (per person) | $ | 16 |
Favors and program (per person) | $ | 2 |
Band | $ | 1,250 |
Rental of ballroom | $ | 500 |
Professional entertainment during intermission | $ | 750 |
Tickets and advertising | $ | 2,500 |
The committee members would like to charge $28 per person for the evenings activities.
Required:
1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)?
2. Assume that last year only 400 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even?
3.Refer to the original data ($28 ticket price per person). Prepare a CVP graph for the dinner-dance from zero tickets up to 600 tickets sold.
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