Reference no: EM13597549
Jackie Thomas has been elected to handle the local basketball game. The game is put on by a nonprofit organization that organizes games in the area. The organization puts on three different games each year-one in May, one in August and one in September. The games run for 4 weeks each. Jackie is trying to determine whether she should schedule two or three games/week for May's games. She has developed the following cost estimates associated with the games:
• Cost of printing notices will be a $20 set up fee plus $.25 per notice
• Postage to mail notices will be $.30 each.
• Cost of printing posters is $250 for a minimum purchase of 70 posters which is all that is needed.
• Cost of building the stands will be $1,215 per season.
• Cost of printing 100-500 programs will be $100; 500 to 1,000 programs will be $200 and 1,000 to 2,000 will be $400.
• Cost of security will be $99 per night plus $25 per hour; two hours will be needed each night.
• Cost of food to be served at halftime - one pound serves 10 people. The cost is $12/pound.
•The court stands can hold 150 people per game. The cost of readying and operating the stands is $200/ night if the attendance is 100 people or less. The cost rises to $425/night if attendance is more than 100 people since additional seating must be set up.
• One of the members owns the basketball court and rents it to the organization for $50 per week plus $1 per ticket sold.
• Each member attending receives a drink. The cost averages $2/person. (Only members receive the complimentary drink tickets.)
The organization has 1,400 members who provide continuing support for the organization through a small membership fee. All members receive a notice of the games and receive priority in buying tickets. After a specific deadline the tickets are made available to the general public. Ordinarily, about 960 of the members attend the summer game. The games are played from 8 to 11 p.m.
1. Indicate the type of behavior exhibited by the above cost items.
a.Use number of members attending as the activity base.
b.Use number of nights of games as the activity base.