What should next generation charge per person

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Question: Next Generation clothing is going to host a fashion show to introduce a new line of clothing. The Director of Finance has established that any ancillary marketing activity must have a contribution margin of 42%. The costs to host the fashion show include $300 for room rent, $500 for rental of sound and stage equipment, plus $10 for courier costs. For each person attending the event, Next Generation will need to spend $11 per person for food, $6 per person for drinks and another $2 per person for ticket distribution. On top of all these costs, the event marketing agency estimates that Next Generation will need to spend $10,000 for advertising. What should Next Generation charge per person?

Reference no: EM133410629

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