Case #1-Cathy's Crafts Cathy is starting a virtual craft workshop business. Currently she is planning to...

 

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Case #1-Cathy's Crafts Cathy is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Cathy's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Cathy's has been hosting 40 guests per week. Her variable costs for Party A are $576 per week. Cathy has fixed costs of $1, 200. Cathy knows that her fixed costs will not increase if she can host more "parties" each week. Cathy plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Cathy plans a party mix with a ratio of 1 Party B for every 2 Party C and 8 Party A for every Party C. (8:1:2). Cathy plans to host 250 guests each week at parties. Based on this information please help Cathy predict her potential net income to see if she can make this her new full-time income. Sales Mix Selling Price Unit Variable Costs. ate Contribution Margin Weighted average Contribution Margin Fixed Costs per month WACM Break Even Point WACM Break-Even Point per Party Units Sold (total guests) Total Revenue per Week Total Variable Costs Per Week Total Fixed Costs Per Week Party A Party B Party C Totals 100% 250 Case #1-Cathy's Crafts Cathy is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Cathy's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Cathy's has been hosting 40 guests per week. Her variable costs for Party A are $576 per week. Cathy has fixed costs of $1, 200. Cathy knows that her fixed costs will not increase if she can host more "parties" each week. Cathy plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Cathy plans a party mix with a ratio of 1 Party B for every 2 Party C and 8 Party A for every Party C. (8:1:2). Cathy plans to host 250 guests each week at parties. Based on this information please help Cathy predict her potential net income to see if she can make this her new full-time income. Sales Mix Selling Price Unit Variable Costs. ate Contribution Margin Weighted average Contribution Margin Fixed Costs per month WACM Break Even Point WACM Break-Even Point per Party Units Sold (total guests) Total Revenue per Week Total Variable Costs Per Week Total Fixed Costs Per Week Party A Party B Party C Totals 100% 250

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Sales Mix 250 divided into 812 Selling Price Unit Variabl e Cost Contributio n Margin Weighted A ver... View the full answer