The Red Lions Brotherhood is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event: Dinner per person P 70 Programs and souvenir per person 30 Orchestra 15,000 Tickets and advertising 7,000 Riverboat rental 48,000 Floorshow and strolling entertainment 10,000 The committee members would like to charge P300 per person for the evening's activities. Assume that only 250 persons are expected to attend the extravaganza, what ticket price must be charged to breakeven?

The Red Lions Brotherhood is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event: Dinner per person P 70 Programs and souvenir per person 30 Orchestra 15,000 Tickets and advertising 7,000 Riverboat rental 48,000 Floorshow and strolling entertainment 10,000 The committee members would like to charge P300 per person for the evening's activities. Assume that only 250 persons are expected to attend the extravaganza, what ticket price must be charged to breakeven?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 6CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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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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The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) $ 30 Favors and program (per person) $ 3 Band $ 1,260 Rental of ballroom $ 630 Professional entertainment during intermission $ 1,260 Tickets and advertising $ 3,150 The committee members would like to charge $54 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 200 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to the nearest whole dollar amount.)
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) $ 11 Favors and program (per person) $ 2 Band $ 1,140 Rental of ballroom $ 570 Professional entertainment during intermission $ 760 Tickets and advertising $ 1,330 The committee members would like to charge $32 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 100 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
[The following information applies to the questions displayed below.] The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) $ 23 Favors and program (per person) $ 4 Band $ 780 Rental of ballroom $ 390 Professional entertainment during intermission $ 260 Tickets and advertising $ 1,170 The committee members would like to charge $40 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 100 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to the nearest whole dollar amount.) 1. Break-even point persons 2. Ticket price per person to break even
The Museum of America is preparing for its annual appreciation dinner for contributing members. Last year, 525 members attended the dinner. Tickets for the dinner were $24 per attendee. The profit report for last year’s dinner follows.Ticket sales $12,600 Cost of dinner 15,300 Gross margin (2,700) Invitations and paperwork 2,500 Profit (loss) $ (5,200) This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year’s costs. Of the $15,300 cost of the dinner, $9,000 were fixed costs and $6,300 were variable costs. Of the $2,500 cost of invitations and paperwork, $1,975 were fixed and $525 were variable Q.Prepare last year’s profit report using the contribution margin format.
The Museum of America is preparing for its annual appreciation dinner for contributing members. Last year, 525 members attended the dinner. Tickets for the dinner were $24 per attendee. The profit report for last year’s dinner follows.Ticket sales $12,600 Cost of dinner 15,300 Gross margin (2,700) Invitations and paperwork 2,500 Profit (loss) $ (5,200) This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year’s costs. Of the $15,300 cost of the dinner, $9,000 were fixed costs and $6,300 were variable costs. Of the $2,500 cost of invitations and paperwork, $1,975 were fixed and $525 were variable Q.The committee is considering expanding this year’s dinner invitation list to include volunteer members (in addition to contributing members). If the committee expands the dinner invitation list, it expects…
Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country It has two options for the event: OPTION 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food OPTION 2: Tallgrass Country Club Fixed rental cost of $3,000 A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $1,200. Tickets are expected to be $30 per person. Local freight business supporters will donate any other items required for the event. Which option provides the least amount of risk? Which option provides the greatest operating income if 600 people attend? Which option provides the greatest degree of operating leverage if 600 people attend? Which option would you choose? Why?
Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country clubs. It has two options for the event: OPTION 1: Crestview Country Cluba. Fixed rental cost of $1,000b. $12 per person for food OPTION 2: Tallgrass Country Cluba. Fixed rental cost of $3,000b. A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local freight businesssupporters will donate any other items required for the event. a) Which option provides the least amount of risk? b) Which option provides the greatest operating income if 600 people attend? c) Which option provides the greatest degree of operating leverage if 600 people attend? d) Which option would you choose? Why?
The members of the city cultural center have decided to put on a play once a night for a week. Their auditorium holds 600 people. By selling tickets, the members would like to raise $2,700 every night to cover all expenses. Let d represent the number of adult tickets sold at $6.50. Let s represent the number of student tickets sold at $3.50 each. If all 600 seats are filled for a performance, how many of each type of ticket must have been sold for the members to raise exactly $2,700? At one performance there were two times as many student tickets sold as adult tickets. If there were 360 tickets sold at that performance, how much below the goal of $2,700 did ticket sales fall?
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Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $500,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign. Cross-TrainerShoe RunningShoe Unit selling price $ 90 $112 Unit production costs: Direct materials $ (24) $(30) Direct labor (10) (8) Variable factory overhead (6) (6) Fixed factory overhead (8) (16) Total unit production costs $(48) $(60) Unit variable selling expenses (12) (12) Unit fixed selling expenses (4) (16) Total unit costs $(64) $(88) Operating income per unit $ 26 $ 24 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 25,000 additional units of cross-trainer shoes or 18,000…