The New Mexico State Fair is one of the largest state fairs in the United States. (Click the icon for additional information about the fair.) Assume the following schedule of fees for food vendors at the New Mexico State Fair: (Click the icon to view the schedule of fees.) Nova Concessions is a vendor at the fair. (Click the icon to view additional information about Nova Concessions.) Read the requirements. Requirement 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? Fee Concession fees Fixed/Variable Variable Electrical service Fixed Employee wages Fixed Fair admission fees Fixed Ground service fees Fixed Fixed Parking permit fees Requirement 2. What is the projected total fee that Nova Concessions will need to pay to The New Mexico State Fair assuming it meets its expected sales level for each of the 14 days of the fair? Variable Fee: More info It draws nearly one million visitors over the fourteen-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 New Mexico 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 com dogs. Imi More info Unite M It has a food booth that requires 10 feet of front frontage and is 8 feet deep. Nova Concessions expects to have sales averaging $5,500 per day for each of the 14 days of the fair. It has a total of three employees who will work the fair throughout the entire 14-day period. Nova Concessions pays for each employee's fair admission and parking. Assume that the employee wages for the 14-day period are expected to total $6,145 Print Done Print Done More info $6 per linear foot for ground service fees (front footage x depth) 10% of concessions (food sales) $65 per 14-day parking permit $260 for 100-amp electrical service $60 per 14-day fair admittance pass (one is included with basic rental agreement) Minimize Concessions will need to pay to The New Mexico State Fair assuming it meets its expected sales level Requirements 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? 2. What is the projected total fee that Nova Concessions will need to pay to The New Mexico State Fair assuming it meets its expected sales level for each of the 14 days of the fair? 3. Assume that variable costs are 70% of sales revenue. (This 70% includes the 10% concession fee charged by The New Mexico State Fair) How much in total sales revenue is needed for Nova Concessions to break even? 4. Calculate Nova Concessions' margin of safety both in dollars and percentage Print Done Requirement 2. What is the projected total fee that Nova Concessions will need to pay to The New Mexico State Fair assuming it meets its expected sales level for each of the 14 days of the fair? Variable Fee: Ground service fees Fixed Fee: 480 Concession fees 7700 Parking permit fees 65 Electrical service 260 Fair admission fees 130 Total Fixed Fee 8155 8635 Total Fee to The New Mexico State Fair