part C D QUESTION 2. Your events management company is planning a party and you have been asked to prepare a report for your manager. You have identified the following costs which you think are relevant; £ Venue hire 1,500 Staff costs 750 Promotional costs 150 Food and drink cost per person 15 The venue can hold up to 500 people and you think you can sell tickets for £36 each. Required (show your workings) Prepare your report addressing the following questions; a) How many tickets do you have to sell to breakeven? b) If you expect to sell 175 tickets, what is the margin of safety c) If your target profit is £500, how many tickets will you need to sell? d) How much profit/(loss) will you make if you sell 160 tickets?
part C D QUESTION 2. Your events management company is planning a party and you have been asked to prepare a report for your manager. You have identified the following costs which you think are relevant; £ Venue hire 1,500 Staff costs 750 Promotional costs 150 Food and drink cost per person 15 The venue can hold up to 500 people and you think you can sell tickets for £36 each. Required (show your workings) Prepare your report addressing the following questions; a) How many tickets do you have to sell to breakeven? b) If you expect to sell 175 tickets, what is the margin of safety c) If your target profit is £500, how many tickets will you need to sell? d) How much profit/(loss) will you make if you sell 160 tickets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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part C D
QUESTION 2.
Your events management company is planning a party and you have been asked to prepare a report for your manager. You have identified the following costs which you think are relevant;
|
£ |
|
|
Venue hire |
1,500 |
|
Staff costs |
750 |
|
Promotional costs |
150 |
|
Food and drink cost per person |
15 |
The venue can hold up to 500 people and you think you can sell tickets for £36 each.
Required (show your workings)
Prepare your report addressing the following questions;
a) How many tickets do you have to sell to breakeven?
b) If you expect to sell 175 tickets, what is the margin of safety
c) If your target profit is £500, how many tickets will you need to sell?
d) How much
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