Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

The Maine State Fair is one of the largest state fairs in the
United States.
i.(Click the icon for additional information about
the fair.)
Assume the following schedule of fees for food vendors at
the Maine State Fair:
(Click the icon to view the schedule of fees.)
Celestial Concessions is a vendor at the fair.
i.(Click the icon to view additional information
about Celestial Concessions.)
Read the requirements.
Variable Fee:
Concession fees
Fixed Fee:
Electrical service
Employee wages
Fair admission fees
Parking permit fees
Total Fixed Fee
Total Fee to The Maine State Fair
IVIore InTo
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 Maine 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.
$12 per linear foot for ground service fees (front footage x depth)
12% of concessions (food sales)
$70 per 10-day parking permit
$320 for 100-amp electrical service
$45 per 10-day fair admittance pass (one is included with basic
rental aqreement)
It has a food booth that requires 18 feet of front frontage and is 7 feet deep.
Celestial Concessions expects to have sales averaging $5,000 per day for each of
the 10 days of the fair. It has a total of three employees who will work the fair
throughout the entire 10-day period. Celestial Concessions pays for
each employee's fair admission and parking. Assume that the employee wages for
the 10-day period are expected to total $2,868.
image text in transcribed

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

Recommended Textbook for

Managerial Accounting A Focus on Ethical Decision Making

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

5th edition

324663854, 978-0324663853

Students also viewed these Accounting questions