Which arrangements with band will be in the best interest

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Problem 1: One way for managers to cope with uncertainty in profit planning is to

a. use CVP analysis because it assumes certainty.

b. recommend management hire a futurist whose work is to predict business trends.

c. wait to see what does happen and a report based on actual amounts.

d. use sensitivity analysis to explore various what-if scenarios in order to analyze changes in revenues or costs or quantities.

Problem 2: The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following arrangements with the band will be in the best interest of the fraternity?

a. $2500 fixed fee

b. $1000 fixed fee plus $5 per person attending

c. $10 per person attending

d. $25 per couple attending

Reference no: EM132738665

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