Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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- A demand of 230 banquet attendees can be expected at a dinner plate price of $80.00 each. A demand of 370 banquet attendees can be expected at a dinner plate price of $45.00 each.
- Catering Service A has a fixed cost of $1,800 and a marginal cost of $30 for each plate.
- Catering Service B has a fixed cost of $2,500 and a marginal cost of $22 for each plate.
- Costs for both caterers include the food, drinks, plates, utensils, tablecloths, glasses, crew, and cleanup.
- Dinner plates will only be sold as an entire unit. To justify company resources and to ensure the event will benefit the charity, the CEO insists the tickets be sold for no less than $40. All profits will go toward a charity of the committee's choosing.
- Additional spontaneous donation to the charity will be accepted the night of the banquet. Studies estimate that 5% will give $5, 23% will give $20, 18% will give $50, 7% will give $100, and 2% will give $500.
Determine the break-even quantities for each of the two possible catering services.
Catering Service A will at least break even at a minimum of ________ banquet attendees and a maximum of _______ banquet attendees.
Catering Service B will at least break even at a minimum of ________ banquet attendees and a maximum of _______ banquet attendees.
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