A medieval-themed wedding event for Client A charges $150 per guest as a flat fee for all services. A total of 60 guests is expected to attend the event. The planner works out a total cost of $6,000 for the event. To find the net profit margin: The total revenue for the event: $9,000 ($150 per guest 60 attendees) The total cost: $6,000 The net income: $3,000 = ($9,000 $6,000) The net profit margin: 33% = ($3,000 [net income] $9,000 [total revenue]) 100 For every $1 the event produces, $0.33 is kept as net profit. From this example, the cost of the event as a percentage is calculated as follows: The event cost as a percentage: the cost of event the event revenue = 67% ($6,000 $9,000) Per every $1 of the event revenue, $0.67 is spent as costs for staging the event. Should the event planner be concerned about the number?

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The event planner should not be overly concerned about the cost of the event as a percentage ... View the full answer