The local chapter of the Louisiana Society of CPAs is planning a fundraiser to provide scholarships for accounting students (They really do and you have to apply for them during Fall semester). The committee chairperson, Amy Dupont, CPA, estimates that renting the venue and paying for the sound system and performers and the like would come to $15,000. They plan to charge $50 per person. Variable costs for this function would be negligible.

A. How many people would have to attend for the chapter to raise $21,000?

B. What if the chapter decided to have a cash bar at the event. They estimate that on average that each person would spend $20 at the bar and that the contribution margin ratio would be 50%. How does this change your answer to part A?