Question

- The Hartford Symphony Guild is planning its annual dinner-dance, ineunner-cance following expected costs for the event Dinner (per person) Tavors and program (per person) Band Rental of ballroom Professional entertainment during intermission Tickets and advertising $ 24 $ 2 $1,400 $ 700 $1,400 $3.500 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 400 persons attended the dinner-dance. If the same number attend this year, what must be charged in order to break even? persons 11 Break-even point 2 Ticket price per person to break even

Answer 1

Unit variable cost	26	=24+2
Total Fixed cost	7000	=1400+700+1400+3500
1
Total Fixed cost	7000
Divide by Unit Contribution margin	14	=40-26
Break-even point	500	persons
2
Fixed costs	7000
Divide by Total persons	400
Required Unit Contribution margin	17.50
Ticket price per person to break even	43.50	=17.50+26