The Accounting Society at So. Cal. University is planning its annual fundraising The AS expects to charge $100 per ticket. The Problem A: extravaganza, the Bean Counter's Ball. following projected costs were culled from last year's ball [with 200 attendees] and updated to reflect current costs: Total Unit 30.00 1 Prime Rib Dinners 2 Party Favors 3 Programs 6,000 400 2.00 600 3.00 4,000 1,000 4 Orchestra 20.00 5 Advertising 6 Commemorative Tickets 5.00 500 2.50 7 Beverly Wilshire Ballroom Rent 8 Dinner Time Entertainment 50.00 10,000 2,500 12.50 Costs - 1, 2, 3: These costs have been obtained using competitive bids based on number ordered. Each requires a minimum order of 150 and the actual number must be communicated to vendors 5 days prior to the event. Costs – 4,7,8: These costs are fixed fee and must be booked far in advance. Costs - 6: Tickets are purchased in a block and include this year's date, theme, unique design, and logo. Required: 1. Use the information above to prepare a contribution approach income statement. 2. Use the information in #1 to calculate the following: a. Break-even in tickets and sales dollars. b. Net income if- 150, 250, or 300 were sold. Number of tickets that must be sold in order to earn $10,000, $25,000, $50,000. d. Assume 200 attendees, calculate price per ticket to earn - $10,000, $25,000, $50,000. c. 3. The Dance committee is very concerned given your analysis and has proposed the following changes in attempt to increase the profitability of the Ball: Instead of individual dinners, a delicious buffet will be catered by Chano's Fine Foods. Costs will be $1,000 for attendance of 200-300, $1,500 for 301 to 400 patrons, $2,000 for 401 to 500 patrons, and a $500 for each increase of 100 patrons.. Party favors will be eliminated and programs will copied at Kinko's at a cost of $1 each. The orchestra and dinner entertainment will be replaced by Tito's Party Time DJ. Projected cost $200. Since his parents are on vacation, Ron has offered to host the Ball at their house for a nominal gratuity of $500. All other costs will remain the same. The costs of tickets will be reduced to $30 each and 350 people are expected to attend. a. Prepare a new contribution approach income statement. b. Calculate the new break-even in tickets and sales dollars. c. Calculate profits if- 300, or 450 people attended. d. Assuming 350 attendees, calculate ticket price to earn $20,000 and $50,000

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I need some assistance with Requirement 1 of this question using the information on the document provided by preparing a contribution approach income statement.

PROBLEM SET #12: CVP Analysis
The Accounting Society at So. Cal. University is planning its annual fundraising
The AS expects to charge $100 per ticket. The
Problem A:
extravaganza, the Bean Counter's Ball.
following projected costs were culled from last year's ball [with 200 attendees] and updated to
reflect current costs:
Total
Unit
1 Prime Rib Dinners
2 Party Favors
3 Programs
6,000
30.00
400
2.00
600
3.00
4 Orchestra
4,000
20.00
5 Advertising
1,000
5.00
2.50
6 Commemorative Tickets
7 Beverly Wilshire Ballroom Rent
8 Dinner Time Entertainment
500
50.00
10,000
2,500
12.50
Costs - 1, 2, 3: These costs have been obtained using competitive bids based on number
ordered.
Each requires a minimum order of 150 and the actual number must be
communicated to vendors 5 days prior to the event.
Costs – 4,7,8: These costs are fixed fee and must be booked far in advance.
Costs – 6: Tickets are purchased in a block and include this year's date, theme, unique
design, and logo.
Required:
1. Use the information above to prepare a contribution approach income statement.
2. Use the information in #1 to calculate the following:
a. Break-even in tickets and sales dollars.
b. Net income if- 150, 250, or 300 were sold.
c. Number of tickets that must be sold in order to earn - $10,000, $25,000, $50,000.
d. Assume 200 attendees, calculate price per ticket to earn - $10,000, $25,000, $50,000.
3. The Dance committee is very concerned given your analysis and has proposed the following
changes in attempt to increase the profitability of the Ball:
Instead of individual dinners, a delicious buffet will be catered by Chano's Fine Foods.
Costs will be $1,000 for attendance of 200-300, $1,500 for 301 to 400 patrons, $2,000 for
401 to 500 patrons, and a $500 for each increase of 100 patrons...
Party favors will be eliminated and programs will copied at Kinko's at a cost of $1 each.
The orchestra and dinner entertainment will be replaced by Tito's Party Time DJ.
Projected cost $200.
Since his parents are on vacation, Ron has offered to host the Ball at their house for a
nominal gratuity of $500.
All other costs will remain the same.
The costs of tickets will be reduced to $30 each and 350 people are expected to attend.
a. Prepare a new contribution approach income statement.
b. Calculate the new break-even in tickets and sales dollars.
c.. Calculate profits if- 300, or 450 people attended.
d. Assuming 350 attendees, calculate ticket price to earn $20,000 and $50,000
Transcribed Image Text:PROBLEM SET #12: CVP Analysis The Accounting Society at So. Cal. University is planning its annual fundraising The AS expects to charge $100 per ticket. The Problem A: extravaganza, the Bean Counter's Ball. following projected costs were culled from last year's ball [with 200 attendees] and updated to reflect current costs: Total Unit 1 Prime Rib Dinners 2 Party Favors 3 Programs 6,000 30.00 400 2.00 600 3.00 4 Orchestra 4,000 20.00 5 Advertising 1,000 5.00 2.50 6 Commemorative Tickets 7 Beverly Wilshire Ballroom Rent 8 Dinner Time Entertainment 500 50.00 10,000 2,500 12.50 Costs - 1, 2, 3: These costs have been obtained using competitive bids based on number ordered. Each requires a minimum order of 150 and the actual number must be communicated to vendors 5 days prior to the event. Costs – 4,7,8: These costs are fixed fee and must be booked far in advance. Costs – 6: Tickets are purchased in a block and include this year's date, theme, unique design, and logo. Required: 1. Use the information above to prepare a contribution approach income statement. 2. Use the information in #1 to calculate the following: a. Break-even in tickets and sales dollars. b. Net income if- 150, 250, or 300 were sold. c. Number of tickets that must be sold in order to earn - $10,000, $25,000, $50,000. d. Assume 200 attendees, calculate price per ticket to earn - $10,000, $25,000, $50,000. 3. The Dance committee is very concerned given your analysis and has proposed the following changes in attempt to increase the profitability of the Ball: Instead of individual dinners, a delicious buffet will be catered by Chano's Fine Foods. Costs will be $1,000 for attendance of 200-300, $1,500 for 301 to 400 patrons, $2,000 for 401 to 500 patrons, and a $500 for each increase of 100 patrons... Party favors will be eliminated and programs will copied at Kinko's at a cost of $1 each. The orchestra and dinner entertainment will be replaced by Tito's Party Time DJ. Projected cost $200. Since his parents are on vacation, Ron has offered to host the Ball at their house for a nominal gratuity of $500. All other costs will remain the same. The costs of tickets will be reduced to $30 each and 350 people are expected to attend. a. Prepare a new contribution approach income statement. b. Calculate the new break-even in tickets and sales dollars. c.. Calculate profits if- 300, or 450 people attended. d. Assuming 350 attendees, calculate ticket price to earn $20,000 and $50,000
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