EXERCISE $8-4$

Computing Break$-$Even Point; Creating a CVP Graph $[$LO$2-$ CC$5,6]$

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$)$

Favours and program $($per person$)$

Band

Rental of ballroom

Professional entertainment during intermission

Tickets and advertising

$ $28$

$2$

$4,000$

$1,900$

$2,000$

$2,300$

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

Required:

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

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?

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.