Question: mutliple requirements to this problem listed in the last picture. thank you. The Colorado State Fair is one of the largest stase fairs in the



![Colorado State Fair [CEck, the icon to view the schedule or fees]](https://s3.amazonaws.com/si.experts.images/answers/2024/09/66e08bcd40935_88466e08bccd7953.jpg)
The Colorado State Fair is one of the largest stase fairs in the Uniled States (Click the icon for additional information about the far) Assume the following schedule of fees for food vendors at the Colorado State Fair [CEck, the icon to view the schedule or fees] Stellar Concessions is a vendor at the fair (Csck the teon to view additional intormation about Stellar Concessions) Read the Requirement 1. Of the fees lsted h the schedule which fees aite variable with respect to the number of custoriners at the beoth? Which fees are fxed? It draws nearly one million visitors over the ten-day period each July and August. The fair is a non-profit organization. It is self-supporting and needs, at a minimum, to break even by generating revenues through various activities. Among the sources of revenue for The Colorado State Fair are the revenues generated from the food vendors. A number of food vendors offer a wide variety of fair foods to attendees, including funnel cakes, gyros, cotton candy, milkshakes, and corn dogs. - $9 per linear foot for ground service fees (front footage x depth) - 18% of concessions (food sales) - $40 per 10-day parking permit - $300 for 100 -amp electrical service - $20 per 10-day fair admittance pass (one is included with basic rental agreement) It has a food booth that requires 18 feet of front frontage and is 16 feet deep. Stellar Concessions expects to have sales averaging $5,000 per day for each of the 10 days of the fair. It has a total of three employees who will work the fair throughout the entire 10-day period. Stellar Concessions pays for each employee's fair admission and parking. Assume that the employee wages for the 10-day period are expected to total $9.748 1. Of the fees listed in the schedule, which fees are variable with respect to the number of customers at the booth? Which fees are fixed? 2. What is the projected total fee that Stellar Concessions will need to pay to The Colorado State Fair assuming it meets its expected sales level for each of the 10 days of the fair? 3. Assume that variable costs are 60% of sales revenue. (This 60% includes the 18% concession fee charged by The Colorado State Fair.) How much in total sales revenue is needed for Stellar Concessions to break even? 4. Calculate Stellar Concessions' margin of safety both in dollars and percentage
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
