The Museum of Art is preparing for its annual appreciation dinner for contributing members. Last year, 575 members attended the dinner. Tickets for the dinner were $26 per attendee. The profit report for last year's dinner follows.

1(Click the icon to view the profit report.)This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year's costs. Of the $15,975 cost of the dinner, $8,500 were fixed costs and $7,475 were variable costs. Of the $4,000 cost of invitations and paperwork, $2,850 were fixed and $1,150 were variable.Read the requirements2.

Requirement 1. Prepare last year's profit report using the contribution margin format. (Use parentheses or a minus sign when entering losses.)

If the museum expands the dinner invitation list, the profit (loss) will be

.

Requirement 2. The committee is considering expanding this year's dinner invitation list to include volunteer members (in addition to contributing members). If the committee expands the dinner invitation list, it expects attendance to double. Calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year. (Use parentheses or a minus sign when entering losses.)

1: Data Table

Ticket sales	$14,950
Cost of dinner	15,975
Gross margin	(1,025)
Invitations and paperwork	4,000
Profit (loss)	$(5,025)

2: Requirements

1.	Prepare last year's profit report using the contribution margin format.
2.	The committee is considering expanding this year's dinner invitation list to include volunteer members (in addition to contributing members). If the committee expands the dinner invitation list, it expects attendance to double. Calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year.