Reference no: EM132500204

The United Nations is planning a one-day conference on child labor.

You have been hired as a consultant to help them organize the conference. The costs for the conference are given below. You have been asked to come up with pricing strategies for the conference. The UN expects that 250 people will attend the conference.
Conference center rental: $25,000

Speaker fees: $10,000 Programs:

$5 per person Coffee breaks:

$5 per person Luncheon:

$15 per person Dinner:

$25 per person

a.) Given that 250 people will attend the conference, what are the average fixed costs per attendee?

b.) If 250 people attend, what are the average variable costs per attendee?

c.) What conference fee must the UN charge to break even if 250 people attend?

d.) Suppose the UN offers a discount to attendees from developing nations. Of the 250 expected to attend, 75 will come from developing nations. If the UN only charges these people the marginal costs of their attendance, what fee will they charge attendees from developing nations?

e.) If the remaining 175 attendees must be charged a high enough fee so that the conference still breaks even, what fee must they now be charged if developing nations are charged at the marginal cost of their attendance?

f.) If the UN charged two different prices based on where the attendee is from, what is this an example of?

g.) Provide an example of two implicit costs for holding the conference.