Reference no: EM132548406

Event Company A is in charge of full management of a corporate event and has the following expenses:

Revenue = $125 per guest

Event: 500 guests expected by client

COGS = $35 per guest

Payroll = 10 people to set up earning $9.00 per hour with a 16.55% labor tax rate and 3 people managing event earning $42,000 per year salary with 16.55% labor tax rate. Each hourly person works 8 hours to set up. Management has spent 5 working days on event prep and one day for event execution. (hint: salaried employees are paid for 2,000 hours per year and a working day is categorized as 8 hours)

Rent, Storage & Utilities together = $13,900 per month, however management has deduced that per event the cost of all of this averages $1,200

Other Expenses like insurance, licensing, marketing, and repairs average $4,000 per month, OR an average of $250 per event

ASSUME THAT THIS IS A ONE DAY EVENT

Question 1: What is the profit of this one event? Express in both dollars and as a percentage of overall revenue.