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Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995

Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995
Transcribed Image Text:Problems 5-9 are based on the following information: The date is January 1, 2021 and Party Town (PT) has just won the bidding process to host a party on March 30, 2021. PT is charging their guests an admission fee of $100 per person. PT has rented a banquet hall for $900 that will accommodate up to 100 people. PT has contracted with Cathy's Catering to cater the party for $10 per person that attends (up to 100). PT estimates that they will have $5 of depreciation expense from January 1, 2021 through March 31, 2021. Do not round the units (people) to the nearest person. Round to two decimals. Additional Information: At the party, it is estimated that 80% of the guests will pay at the door in cash and 20% will pay between April 1, 2021 and April 30, 2021. The estimated party guests are 80. Cathy's Catering will be paid half their fee (Cathy requires the estimate to be the max of 100 people) on March 1, 2021 and the balance will be paid on April 15, 2021. The banquet hall will be paid in full on March 1, 2021. What is the budgeted margin of safety in sales dollars? Choose closest answer. $11,000 $5,000 $8,995 $6,995
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