Question

Advise on the ticket price needed to achieve this level of profit.
A. £21,00
B. £6,15
C. 27,15
D. £23.90

As the accounting expert for a local firm of management consultants, you have been left with three scenarios to resolve for different clients. Scenario 3: Albion Ltd are currently organising their annual Christmas dance. The local hotel has a capacity of 400 in their main function suite, exactly equal to the number of employees expected at the event. Costs quoted are as follows: Food per employee £12 Hire of band £240 Hire of function suite £820 Christmas gift per employee £5 Compere for the evening £100 Cocktail per employee £4 Although a social function, the Financial Director would like to make a profit of £1,300 to help offset the poor trading results this year.

Answer 1

Answer - (C) £27.15

Ticket Price needed to achieve the level of profit Amount (in £) Particulars £12 400 Food Cost 4800 Hire of function suite Compere for the evening Hire of band Chrismas gift 820 100 240 £5 400 £4*400 2000 Cocktail 1600 Total Cost 9560 Add: Desired profit 1300 Total price 10860 £10860/400 Ticket price per employee 27.15 Ticket price would be £27.15 to achieve the $1300 profit from the capacity of 400