Question

Answer the following questions using the information below: Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet: OPTION one: Crestview Country Cheb a. Fixed rental cost of $1,000 b. $12 per person for food OPTION two Tallgrass Country Club a Fixed rental cost of $3,000 b. A caterer who charges $8.00 per person for food Southwestern College 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 business supporters will donate any other items required for the event. Which option provides the least amount of risk? Option one Option two Both options provide the same amount of risk. Option one is risk-free

Answer 1

Answ opton-1 fized costs , ooo 1,800 800 3600 3600 bak Even units - (30-12) 3600 bvak Even unids = doo option-a zed losts= 3,00 018a0 800 $5600 5600 brcak Evcn units =. 30-8) SGOO ఎని 2s4.5 255

option 2 OPtion 1 3600 Particulay ixed costs 18 Contibionma inpes uit ass bacak evcn units Here Dbccavse option visk is pvovidd Least amount it bcal-ven point fo lowes SO1 otion ) is concct anawy