The Audubon Society at Enormous State University (ESU) is planning its annual fund-raising "Eat-a-thon." The society will charge students 50¢ per serving of pasta. The only expenses the society willincur are the cost of the pasta, estimated at 16¢ per serving, and the $340 cost of renting the facility for the evening.(a) Write down the associated cost function C(x) in dollars.C(x) =Write down the revenue function R(x) in dollars.R(x)=Write down the profit function P(x) in dollars.P(x): =(b) How many servings of pasta must the Audubon Society sell to break even?servings(c) What profit (or loss) results from the sale of 1,500 servings of pasta?$

Here the revenue comes from the selling of pasta and will depend on number of students. Costs…

Answered: The Audubon Society at Enormous State…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event: Dinner (per person) . . . . . . . . . . . . . . . . . . . . . $7 Favors and program (per person) . . . . . . . . . . . $3 Band . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500 Tickets and advertising . . . . . . . . . . . . . . . . . . . $700 Riverboat rental . . . . . . . . . . . . . . . . . . . . . . . . $4,800 Floorshow and strolling entertainers . . . . . . . . . . $1,000 The committee members would like to charge $30 per person for the evening’s activities. Required: Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend). Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even? Refer to the original data ($30 ticket price per person). Prepare a CVP graph for…
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A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. etc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. The maintenance cost for the first year is $150.000. Utilities are expected to average about $200,000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be 100,000 people (or 100,000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge sothat it can recover at least 6% cost of borrowing on its investment? The university expects the arena to be used for 40 years and to have no appreciable salvage value.
CVP, not-for-profit. Genesee Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The music society just bought a small concert hall in the center of town to house its performances. The lease payments on the concert hall are expected to be $4,000 per month. The organization pays its guest performers $1,800 per concert and anticipates corresponding ticket sales to be $4,500 per concert. The music society also incurs costs of approximately $1,000 per concert for marketing and advertising. The organization pays its artistic director $33,000 per year and expects to receive $30,000 in donations in addition to its ticket sales. If the Genesee Music Society just breaks even, how many concerts does it hold? In addition to the organization’s artistic director, the music society would like to hire a marketing director for $25,500 per year. What is the breakeven point? The music society anticipates that the addition of a marketing…

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