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

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.

Ticket sales

$14,950

Cost of dinner

15,975

Gross margin

(1,025)

Invitations and paperwork

4,000

Profit (loss)

$(5,025)

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.