Computation of breakeven sales and contribution margin

Assignment Help Finance Basics

Reference no: EM139755

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?

Reference no: EM139755

Questions Cloud

Cost recovery deduction of asset : The income from the business before the cost recovery deduction and the 179 deduction was 810k. She takes additional first year depreciation. Determine the cost recovery deduction with respect to the asset for 2013.

Marginal tax rate and effective tax rate : Calculate the marginal tax rate and the effective tax rate for each of the C corporations. Explain why the marginal tax rate for a C corporation can exceed 35%, but the effective tax rate cannot.

Effect on net income of a change in sales volume : Knowledge about the behavior pattern of a cost is important to understanding the effect on net income of a change in sales volume because as sales volume changes and When a firm has financial leverage

Representative sample of all americans : To interpret scores on it, he is presently giving the test to a representative sample of all Americans.

Computation of breakeven sales and contribution margin : Computation of Breakeven sales and Contribution margin at breakeven and what would be the break even in this case

Role of attributions in our social world : Examine the duty of attributions in our social world. What are attributions, and how do we use them in our daily lives?

Determine the firm''s operating income : Which of the following will cause income determined with absorption costing to be higher than income determined with direct costing - An excess of cost of goods manufactured over cost of goods sold for the period represents

Computation of unit cost using activity-based costing : Computation of unit cost using activity-based costing and Determine the unit cost for each of the two products using activity-based costing

Proper accounting treatment of machine : Discuss the proper accounting treatment of $273,000 ($714,000 − $441,000) by which the cost of the first machine exceeded the cost of subsequent machines.

User Account

All Pages