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Problem: Break Even Analysis and CVP Graphing
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner dance committee has assembled the following expect costs for the event:
Dinner ( per person)
$ 18
Favors and program ( per person)
$2
Brand
$ 2,800
Rental Of Ballroom
$ 900
Professional entertainment during Intermission
$ 1,000
Tickets and advertising
$ 1,300
The committee members would like to charge 35,000.00 WON per person for the evenings activities.
(1) Compute the break event point for the dinner dance (in terms of the number of persons who must attend)
(2) Assume that last year only 300 persons attended the dinner-dance. If the same number attends this year, what price per ticket must be charged in order to break even?
(3) Refer to the original data ($35 ticket price per person). Prepare a CVP graph for the dinner-dance from the zero level of activity up to 600 tickets sold.
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