Compute the break-even point for the extravaganza

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Reference no: EM13336080

Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event:

Dinner (per person)
$ 7

Favors and programs (per person)
3

Orchestra
3,000

Tickets and advertising
1,400
Riverboat Rental
9,600 Floor show and strolling entertainers 2,000
The committee members want to charge $30 per person for the evening's activities.
Required: 1. Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend.)

2. Assume that only 250 person attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged in order to break even?

3. If Chi Omega want to make a profit of $6,000 and charge $30 per ticket, how many people must buy tickets?

4. Chi Omega decides to sell tickets for $35 each and the costs will remain the same as shown in the table above. If they believe they can sell 800 tickets, what will be their margin of safety in dollars and as a percent of sales?

Reference no: EM13336080

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