The treasurer anticipates the following costs for the event

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Reference no: EM13379606

The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel:
Room rental                                         $300
Dinner cost (per person)                      25
Chartered buses                                   500
Favors and souvenirs (per person)       5
Band                                                    900

Each person would pay $40 to attend; 200 attendees are expected.

a. Will the event be profitable for the sorority? Show computations.

b. How many people must attend for the sorority to break even?

c. Suppose the sorority encouraged its members to drive to the hotel and did not charter the buses. Further, a planned menu change will reduce the cost per meal by $2. If each member will still be charged $40, compute the contribution margin per person.

Reference no: EM13379606

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