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Golden Age Retirement Planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1000, and the cost of advertising and other incidentals is about $10,000 per seminar. The cost of the materials and specials gifts for each attendee is $60 per person attending the seminar. The company is considering charging a $250 fee per person to attend the seminar, given that’s what their main competitor does, but are wondering if they should consider other pricing options.
1. Create a well-engineered spreadsheet model that will produce the total profit for any given attendee number, with points assessed for how clearly and logically your model is laid out.
2. Find out how many people must attend each seminar for Golden Age to break even, for any given fee value.
3. Create a data table (by either method discussed in class) that examines how the break-even point changes, as the seminar fee changes between $100 and $500 (with increments of $50). Use an appropriate Excel data visualization to illustrate this.
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