# Solve using the Contribution Margin approach. A college ski club is planning a weekend package for its

## Question:

Solve using the Contribution Margin approach.

A college ski club is planning a weekend package for its members. The members will each be charged $270. For a group of 15 or more, the club can purchase a two-day downhill pass and two nights’ accommodation for $220 per person. A 36-passenger capacity bus can be chartered for $1400.

a. How many must sign up to break even?

b. If the bus is filled, how much profit will the club make?

c. If the student government agrees to cover any loss up to $400, what is the minimum number of participants required?

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