Question

Rooney Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $90,000 per concert. Required a. What are the total band cost and the cost per person if concert attendance is 15,000, 15,500, 16,000, 16,500, or 17,000? b. Is the cost of hiring the band a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required A Required B What are the total band cost and the cost per person if concert attendance is 15,000, 15,500, 16,000, 16,500, or 17,000? (Round "Cost per person" answers to 2 decimal places.) 15,000 15,500 16,000 16,500 17,000 Number attending Total cost of concert Cost per person Required A Required

Answer 1

Requirement A Number attending 15000 15500 16000 16500 17000 Total cost of concert $90,000.00 $90,000.00 $90,000.00 $90,000.00 $90,000.00 Cost per person $6.00 $5.81 $5.63 $5.45 $5.29 Requirement B Since the cost of hiring a band remains at $90000 regardless of number attending it is a Fixed Cost