Assume that you are responsible for planning a banquet for your school’s accounting club. The banquet will feature a dinner, followed by a speaker. The costs associated with the banquet are as follows: Meals Beverages (coffee and tea) Use of banquet room Speaker’s fee $10 per person $1 per person $50 $100 Assume that 50 students will attend the banquet. If you want to break even on this event, how much do you need to charge for a ticket? Please explain your answer and how it relates to Chapter 19.
Assume that you are responsible for planning a banquet for your school’s accounting club. The banquet will feature a dinner, followed by a speaker. The costs associated with the banquet are as follows:
|
Meals Beverages (coffee and tea) Use of banquet room Speaker’s fee |
$10 per person $1 per person $50 $100 |
Assume that 50 students will attend the banquet. If you want to break even on this event, how much do you need to charge for a ticket? Please explain your answer and how it relates to Chapter 19.
Fixed Costs:
Fixed costs, otherwise called overhead expenses or indirect expenses, are costs of doing business that are not subject to the degree of labor and products created by the business. It does not change with an increment or reduction in how much labor and products are delivered or sold. Fixed costs are usually incurred by organizations that don't differ in size from the initial creation.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
