This is specifically Management Accounting.

236 Bingo and Leverage A California law permits bingo games when offered by specified nonprofit institutions including churches. Reverend Jill Bono, the pastor of a new parish in Marin County, is investigating the desirability of conducting weekly bingo nights. The parish has no hall but a local hotel would be willing to commit its hall for a lump-sum rental of $600 per night. The rent would include cleaning, setting up and taking down the tables and chairs, and so on. 1. Bingo cards would be provided by a local printer in return for free advertising there on. Door prizes would be donated by local merchants. The services of clerks, callers, security force, and others would be donated by volunteers. Admission would be $3 per on, entitling the player to one card; extra cards would be $1.50 each. Reverend Bono also learns that many persons buy extra cards, so there would be an average of four cards played per person. What is the maximum in total cash prizes that the church may award and still break even if 200 persons attend each weekly session? 2. Suppose the total cash prizes are $900. What will be the church's operating income if 100 persons attend? If 200 persons attend? If 300 persons attend? Briefly explain the effects of the cost behavior on income rental arrangement but keeping the prize money unchanged at $900. Suppose the those in requirement 2 3. After operating for 10 months, Reverend Bono is thinking of negotiating a differert rent is $200 weekly plus $2 per person. Compute the operating income for attern dance of 100, 200, and 300 persons, respectively. Explain why the results differ fro