Dinner (per person).... Favors and program (per person). Band.... Rental of ballroom.. Professional entertainment during intermission. Tickets and advertising ...... $18 $2 $2,800 $900 $1,000 $1,300
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Break-Even Analysis and CVP Graphing
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:
The committee members would like to charge $35 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 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even?
3. Refer to the original data ($35 ticket price per person). Prepare a CVP graph for the dinner-dance from zero tickets up to 600 tickets sold.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 5 images
