Question: ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable cost for the dinner is $110.

ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable cost for the dinner is $110. ABC will also incur fixed costs such as room rental fees and other fixed costs, totaling $30,000.

How much sales revenue must ABC Catering generate in order to break even?

b. How many tickets must ABC Catering attract in order to break even? Explain your answer.

c. What is ABC Caterings profit or loss at each of the following possible ticket sales levels: 450 tickets? 500 tickets? 525 tickets?

d. If variable costs increase by 5 % per dinner guest, what is the new breakeven point in terms of sales revenue and tickets? Compare it to your answers to questions a and b, and explain the difference.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Suppose the following information is quoted for a hypothetical Treasury security: a. What is the bid price per $100 of par value? b. If an investor wanted to purchase $100,000 of par value of this...

Which of the following activities is most likely to be classified as value-added for a manufacturing company? A. storing B. ordering C. inspecting D. assembling 2. Which of the following activities...

Red Carpet Catering is putting on a charity dinner for the United Way. The average selling price fora ticket is $l85. The variable cost forthe dinner is $78. Red Carpet will also incurfixed costs...

I have an idea about how to do these but I want to double check my work. Please help me 1. A 140-seat dining room had a weekly customer count by meal period and day: Lunch Dinner Sunday Closed 180...

Which picture is not clear. INTRODUCTION business was good in Kamloops, and if they did the Bullarama event, they would forgo one day's revenues in their home market. The couple couldn't be sure of...

PLEASE COMPLETE NO LATER THAN 10/07 @8:00AM Each question(1,2,& 3) must be a minimum of 200 words. Please make answers detailed and knowledgeable based off the attached reading. ARE YOU ABLE TO...

Please see attachment. All three question need to be answered in narrative format. If you have questions, just let me know. Normal requirement for references are 2 outside our course text....

Can you please help me with questions 8 and 9 for Case 6..... I have answers to questions 1-7 if needed... Cases for Management Decision-Making CA-1 Suggested Uses of Cases Case Overview CASE 1 This...

Good Morning... I need help with questions 1-7 for Case 6 in the document attached...Please. Cases for Management Decision-Making CA-1 Suggested Uses of Cases Case Overview CASE 1 This case is the...

(PLEASE TYPE THE ANSWERS) (ACCOUNTING 640) 1. Explain how owning and running a food truck might impact your sales and costs (Explain both variable and fixed costs). 2. On a typical day in Kamloops,...

Taking on a responsibility you know can be better completed by someone else would violate the ethical conduct standard of: competency. confidentiality. credibility. integrity. Question 2 Which term...

In Japan, doctors prescribe drugs and supply the drugs to the patient, receiving a 25 percent markup. In the United States, doctors prescribe drugs, but, generally, they do not sell them. (Difficult)...

John Morton, director of materials management for Computer Products Corporation (CPC) in San Jose, is reviewing next year's plans for the supply of a component that is purchased from Osiega Ltd., a...

The practice of companies acting in a manner which secretly thwarts competition amongst themselves is known as _ _ _ _ _ .

In January, gross earnings in Burrell Company were $80,000. The 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of...

Employee Retention at D&Y Demand for systems analysts in the consulting industry is greater than ever. Graduates with a combination of business and computer knowledge, some even from liberal arts...

Given the following data from the payroll register of Johnson Construction, prepare the journal entry to record payroll for the week ending May 20. Given the following data from the payroll register...

You are an audit senior of Aidit & Co and are in the process of preparing the audit programs for the final audit of CariClean Ltd. for the year ending 31 December 2019. The company develops and...

Acme Manufacturing is a major producer of automotive brakes throughout the world, with international headquarters in Pueblo, Colorado. Acme has enjoyed rapid growth in recent years, primarily due to...

Select all that apply A company's success in achieving a meaningful marketspace presence hinges largely its ability to use digital technology to design and execute a marketing program that...

=+2. Choose simple, easy-to-grasp language Whatever you write, use simple, easy-to-grasp language. Avoid complex words, insiders' jargon, and techie terminology. Unless you're writing to a specific...

=+6. Use punctuation to guide the reader's pace and focus Stop and start the reader with short sentences and periods. Like this. See?

=+you're at a caf, in the park, at a train station, listen. Pay attention to how people often don't even finish their thoughts or use one-word sentences. Get it? Great.