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Computation of Breakeven sales and Contribution margin at breakeven.
You are on a committee to host a banquet for a major fundraising organization, which will consist of live music, a reception, a full meal (appetizer, salad, soup, entrée, vegetables, dessert and coffee/tea). The band is $2500 for the evening. The other fixed costs include ice sculpture, $300, reception $2500, photographer, $750 and miscellaneous, $3,000. The meal cost is $45 per ticket. If ticket prices are $100, what is the breakeven number of ticket sales for the event? Now assume that the event planner takes 10% of every ticket sale...what would be the break even in this case? What is the contribution margin at breakeven sales?
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