Problem #1 (15 Points)
The fixed costs of running a fund- raising dinner for Meals for the Homeless are $ 10,000 and the variable costs are $75 per attendee
The facility where the event is being held can accommodate 500 people.
Please answer the following questions about the event:
1) If Meals charged $ 275 per ticket, how many people would have to attend the gala for the organization to break even on the event?
2) If Meals charged $ 300 per ticket, what would the contribution margin be from each ticket sold?.
3) Say Meals on Wheels has three locations with the following mix of contribution and fixed costs of $125,000. Please find the Break Even Quantity for Meals On W
Fixed costs
$
10,000.00
$
75.00
500
37,500.00
Revenues
Per person
of people
Revenues per day
$
1)
per person
unit contribution margin
$
$
Breakeven persons
2)
selling price
contribution margin
3)
Mixed costs
$
275.00
200.00
50
300
225.00
$ 125,000.00
$ 115,000.00
$ 38,333.333
On Wheels using weighted average contribution margin.
