The Garden Club is preparing for its annual meeting in which a magic show will be shown to its contributing members only. Last year, out of 1,500 members, only 600 contributed to the magic show. Tickets for the show were $30 per attendee. The profit report for last years show follows.

Ticket sales	$18,000
Cost of magic show	20,000
Gross margin	(2,000)
Printing, invitations, and paperwork	1,800
Profit (loss)	$ (3,800)

This year, the club committee does not want to lose money on the magic show due to poor attendance, and to achieve this goal, the committee analyzed last years costs.

It found that of the $20,000 cost of the magic show, 40% was fixed costs and the remaining 60% was variable costs. Of the $1,800 cost of printing, invitations, and paperwork, 50% was fixed and 50% variable.

1. Prepare last years profit report using the contribution margin format.
2. Calculate the BE point in units and $.
3. Calculate the % margin of safety for the Club
4. The club committee is considering expanding this years magic show invitation list to include volunteer members (in addition to its contributing members). If the club committee expands the magic show invitation list, it expects an 80% increase in attendance. Calculate the effect this will have on the profit-ability of the show assuming that fixed costs will be the same as last year.
5. The club committee is considering increasing advertisement for the show ($200) combined with a decrease of $2 in the ticket price, which would result in an increase of 40% in the number of tickets.