Question
thoreau co. is planning a fundraiser to benefit various environmental causes. all proceeds in excess of costs will be donated to these causes. the planning
thoreau co. is planning a fundraiser to benefit various environmental causes. all proceeds in excess of costs will be donated to these causes. the planning committee has developed the following budget for the event: ballroom rental: 1900 entertainment: 2500 printing: 500 + 7 per guest food: 25 per guest decorations and favors: 800 + 3 per guest
a) write the equation for the cost function, based on the budget developed by the planning committee. b) if thoreau co. charges 200 per ticket, how many people would have to attend the event in order for the event to break even? c) if thoreau co. charges 200 per person and 3000 people attend the event, how much will thoreau donate to the environmental causes? hefner florist, inc. operates retail stores in several shopping malls. the average selling price of an arrangement is 30 and the average cost of each sale is 18. a new mall is opening where hefner wants to locate a store, but the location manager is not sure about the rent method to accept. the mall operator offers the following three options for its rental store rentals: 1. paying a fixed rent of 15000 a month, or 2. paying a base rent of 9000 plus 10% of revenue received, or 3. paying a base rent of 4800 plus 20% of revenue received up to a maximum rent of 25000. a. for each option, compute the breakeven sales and the monthly rent paid at break-even. b. beginning at zero sales, show the sales levels at which each option is preferable up to 5000 units.
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