Question
This is all one big question according to chegg policy since it is one question you have to answer all of it Southwestern College is
This is all one big question according to chegg policy since it is one question you have to answer all of it
Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet:
OPTION 1: Crestview Country Club
a. Fixed rental cost of $1,000
b. $12 per person for food
OPTION 2: Tallgrass Country Club
a. Fixed rental cost of $3,000
b. A caterer who charges $8.00 per person for food
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
Which option provides the least amount of risk?
Group of answer choices
Both options provide the same amount of risk.
Option one
Neither option has risks.
Option two
Which option has the lowest breakeven point?
Both options provide the same amount of risk.
Option one
Neither option has risks.
Option two
The lowest breakeven point cannot be determined.
Option one
Both options have the same breakeven point.
Option two
Which option provides the greatest operating income if 600 people attend?
Group of answer choices
Operating incomes are identical.
option one
Operating income is indeterminable.
option two
Which option provides the greatest operating income if 600 people attend?
Operating incomes are identical.
option one
Operating income is indeterminable.
option two
Which option provides the greatest degree of operating leverage if 600 people attend?
Group of answer choices
Operating leverage is indeterminable.
option two
option one
Both options provide equal degrees of operating leverage.
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