Reference no: EM132546460
Iqra University is planning a concert university.
The university is considering a selling price for tickets at either RS 2,000 or RS 4,000 each
The following are the estimated costs of the proposed concert
Advertising 250,000
Wages of Iqra University Personnel employed at the concert 600,000
Printing of tickets 350,000
Fee of singer 2,500,000
Ticket sellers, security 200,000
Printing of tickets 500,000
Required:
Question 1: Calculate the number of tickets which must be sold at each price to achieve break-even point, if the singer agrees to change from fixed fee of RS 2.5 million to a fee equal to 25% of the contribution margin.
Question 2: Calculate the level of ticket sales for each price, at which the company would be indifferent as between the fixed and percentage fee alternative.
Question 3: Comment on the factors, which you think, the company might consider in choosing between the fixed fee and percentage fee alternative.
|
Define notion of whistle-blowing
: Define notion of 'whistle-blowing' as it applies to the organizational context. Demonstrate how the Kew Garden's principle would define whistle-blowing
|
|
Define the term opportunity cost
: List and explain with examples two important criteria that must be satisfied in order for information to be relevant. Define the term "opportunity cost"
|
|
Define what is meant by the term insider trading
: Define what is meant by the term "Insider trading". What are the potential problems that arise from insider trading in the workplace
|
|
Determine the sensitivity of the project npv
: Use straight line depreciation. Determine the sensitivity of the project's NPV with:
|
|
Calculate the level of ticket sales for each price
: Calculate the level of ticket sales for each price, at which the company would be indifferent as between the fixed and percentage fee alternative.
|
|
How much is the estimated cost of inventory loss on June
: Candy estimates can be sold to a jobber for 120,000. The Company uses gross profit method. How much is the estimated cost of inventory loss on June 1, 2020
|
|
What will an average house cost in 12 years
: If an average home in your town currently costs $128,000, and house prices are expected to grow at an average rate of 2.8%
|
|
Solve minimum price firm would be prepared to charge
: Calculate the minimum price the firm would be prepared to charge. A firm has excess capacity, and has received an order for 50000 units at $20 each over
|
|
Prepare the journal entries to record the sale
: Frigid Temperatures Inc. has sold 1,000 refrigerators during 2020 at a total price of $ 1,620,000, Prepare the journal entries to record the sale
|