7)Corp is holding a fundraising banquet. He has two options for the banquet: OPTION one: a. Fixed rental cost of $1,000 b. $12 per person for food OPTION two: a. Fixed rental cost of $3,000 b. A caterer who charges $8.00 per person for food It has budgeted $1,800 for administrative and marketing expenses. He will hire a band which will cost another $800. Tickets will be $30 per person. Which option provides the greatest operating income if 600 people attend? 8) How many people would need to attend such that the costs for the two options are the same?

7)Corp is holding a fundraising banquet. He has two options for the banquet: OPTION one: a. Fixed rental cost of $1,000 b. $12 per person for food OPTION two: a. Fixed rental cost of $3,000 b. A caterer who charges $8.00 per person for food It has budgeted $1,800 for administrative and marketing expenses. He will hire a band which will cost another $800. Tickets will be $30 per person. Which option provides the greatest operating income if 600 people attend? 8) How many people would need to attend such that the costs for the two options are the same?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Oe $25.60 per machine hour. Salim is financial advisor and consultant. He wishes to go to Salalah during Al Khareef season. He is considering two alternatives. The first one is to drive to Salalah. This option is expected to cost Salim about $150 in fuel cost. Salim also can invite three of his friends to join the trip. Each one of them is expected to pay Salim $40. The other option for Salim is to use Muwasalat bus service. Under this option Salim will also need to rent a car once he arrives to Salalah. The total cost of this option including the bus ticket and the car rental is $400. Because the bus trip takes about 11 hours, Salim can use the time to provide consultation services that are expected to earn him $500 in total. If Salim decided to drive to Salalah, what would the differential cost ($) of the that option? O a. None of the given answers O b. 120 Oc 400 O d. 500 O e. 150 Windows buiw GE NEXT PAGE ws hu lacl Jail ENG DELL
1. You can purchase the right to sell beverages at sporting events for 3 years at a local minor league baseball stadium. The cost of the rights to sell the beverages costs $200,000. The first year you plan on selling 25,000 drinks at $5 each. They will cost you $3 each. The second and third years, you will sell 50,000 drinks at $5, but now your cost is only $2.50 each. You need to spend $5,000 each year no matter what for electricity (ie. this is a fixed cost of the project). You already paid $10,000 to get your food license. You can depreciate the cost of the rights over the three years (straight line) and your tax rate is 25%. With a require rate of return of 10%, should you buy the rights? (NOTE: If EBIT is less than zero, use zero for the amount of taxes. Ignore any loss carry-forward.)
I am interested in purchasing a 200 unit apartment in New Jersey for all cash. There are 100 one unit bedroom and 100 two unit bedroom. There are 93 one unit bedroom currently occupied and 95 unit 2 bedroom occupied The rent of one -unit bedroom currently is $2000 per month and two-unit bedroom is $2,700 per month. Market rent for one unit bed room is $ 1,700 and two-unit is $2,400 per month. Market vacancy rate is 3.5%. The property generates $30 per month per occupied flat unit. What will be the Gross operating Income for property.
5.5. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) Wages and benefits Rent Depreciation Utilities Medical supplies Administrative supplies $400,000 220,000 5,000 30,000 2,500 50,000 10,000 Assume that all costs are fixed, except supply costs (medical and administrative), which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to break even (revenue covers all accounting costs)? c. What number of visits is required to produce an after- tax profit of $100,000?
a small clinic treats only 10 patients. it expects operating cost per patient will be $1,800 or total $18,000. It desires an operating margin of $3600. If the clinic trates one patient as a charity case, how much must the clinic charge the 9 patients in order to reach its financial requirements?
9. You start a company that gives tours to wineries in the Fingerlakes. You have a contract with Fingerlakes Limo to borrow a van for the tour which costs $1500, and you have decided to include lunch and a glass of wine for each participant which costs you $40/person. You charge $180 per rson trip if 10 people sign up, but you give an $8 discount for each additional person that signs up. How many people need to go on each tour for you to maximize your profit?
Here is what we know: We are looking at purchasing a Townhome in Gvegas Purchase price $190,000 Yearly taxes $1,400/yr, but if it's in the city limits, then add another $800/yr Yearly Home Owners Insurance $ 1,200/yr HOA (Home Owners Association) $900/yr Projected repair costs $900/yr Vacancy Rate 1 months rent Things to consider.... What if the AC unit goes out? • Vacancy Rates (What is that?) • Vetting Renters (What does that mean?) Tax benefits (Are there any?) Depreciation (How so) ⚫ Appreciation (How does it work)
Ef 61.
23 )
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 break-even.
A concert organizer agrees to pay the owner of an auditorium 26% of the ticket sales. The organizer manages to sell 2,800 tickets at $60 each. If the organizer makes a profit of $6,600, what was the total cost of holding the concert? (Round your answer to the nearest dollar amount.) Total cost ($): Numeric Response 50,280
You own a restaurant, your capacity is 100 dinners a day. Your regular price is $30 per dinner. Your variable costs are $10 per dinner. Your fixed costs are $500 per day. On Mondays, business is slow, so you expect to sell only 40 dinners (i.e., you have a lot of unused capacity). Special order: a one-time order that is not considered part of the company's normal ongoing business. A charity organization wants to hold its fundraising dinner in your restaurant on Monday. They offer to pay $15 per dinner, for a total of 50 dinners. Should you take this special order? Why or why not?