Reference no: EM13204270
Breakeven Analysis Procrastinators Anonymous (PA) is hosting their annual convention this coming year in Dallas, TX. Although this is not typical of this organization, they wish to plan ahead to determine what the cost of the keynote banquet ticket should be. The ticket cost then can be included in materials that will be sent out prior to the convention. The banquet coordinator has determined the following costs: Rental of banquet facility $2,500 Entertainment for banquet $1,200 Cost of meal $12 Decorations $400 Printing costs $500 Favors per attendee $2
Requirements :
1. Given the above information and assuming no profit will be made, what ticket price should be set if 500 procrastinators attend? If 750 people attend?
2. If a ticket price of $35 is set, how many procrastinators need to attend for PA to break even on their banquet? If the ticket price was $50? Use the roundup function to round up to the next integer (eg. 344.24 would be 345)
3. If fixed costs can be reduced by 10%, what is the breakeven point (in number of attendees) if the ticket price is $35. Use the roundup function to round up to the next integer.
4. If PA wishes to make a profit of $1,000 on the banquet and the ticket price is $35, how many procrastinators need to attend? Assume that fixed costs do not change from the initial amounts. Use the roundup function to round up to the next integer.
5. Create a CVP chart for requirement 2 (ticket price of $35). Properly label all facets of the chart.
6. Using Goal Seek:
a. How many attendees need to attend for the banquet to net EXACTLY $955 in profit (assuming $35 ticket price)? Format attendees to 5 decimal places.
b. For a breakeven, what should be the EXACT ticket price (do not round) if EXACTLY 455 attendees show up at the banquet.
|
Find necessary interest rate in account to allow gradient
: A gradient series is deposited for 15 years in an interest bearing account. The first deposit is $15,000, the annual gradient factor is $1,000. At the end of the 16th year, withdrawals from the account begin with a first sum of $50,000.
|
|
Explain a water sprinkler is set to shoot a stream of water
: A water sprinkler is set to shoot a stream of water a distance of 12 meters and rotate through an angle of 40 degrees. (a)For r=12 meters, what angle is required to water twice as much area?
|
|
Explain does the parabola open up or down
: A farmer has 90 feet of fencing with which to enclose two rectangular pens adjacent to a long existing wall, as shown below. He will use the wall for one side and the available fencing for the long side parallel to the wall
|
|
Why do necessities tend to have demand that price inelastic
: what distinguishes public good from private goods what happens to total revenue given a price increase and demand is inelastic Why What is the difference b/w economic and accounting profit Why is a difference b/w them important
|
|
Create a cvp chart for requirement
: How many attendees need to attend for the banquet to net EXACTLY $955 in profit and Format attendees to 5 decimal places -
|
|
What is the equation of marthas budget constraint
: Martha has $150 of disposable income to spend each week. She buys Malted milk balls and Snickers. Suppose that malted milk balls cost $2.50 per bag and Snicker cost $1 per bag. 1. What is the equation of Martha's budget constraint, assuming we wil..
|
|
Calculate the equilibrium level of income or real gdp
: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30..
|
|
What is the required after-tax refunding investment outlay
: What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding and what coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par?
|
|
Find what is the price elasticity of demand
: The demand function for bicycles in Mapleville is estimated to be Qd = 2,500 + 10Y - 6 P Where Y denotes income in thousands, Qd is the quantity demanded in units, and P is the price of bicycles. When P = $120, Y = 12 What is the price elasticity o..
|