The Hartford Symphony Guild is planning its annual dinner and dance. The committee has assembled the following expected costs for the event:

Dinner (per person)..................................................................$28
Favours and program (per person)............................................2
Band.......................................................................................4,000
Rental of ballroom................................................................1,900
Professional entertainment during intermission.............2,000
Tickets and advertising........................................................2,300

The committee members would like to charge $55 per person for the evening’s activities.

Required:

1. Compute the break-even point for the dinner and dance (in terms of the number of people who must attend).

2. Assume that last year 300 people attended the dinner and 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 ($55 ticket price per person). Prepare a CVP graph for the dinner and dance from a zero level of activity up to 700 tickets sold, in increments of 100. Number of people should be put on the horizontal (X) axis, and dollars should be put on the vertical (Y) axis.