Please help to answer part B, questions 6 and 7 below.

Part B. The company has received a request to bid on a 120-guest fund-raising Deluxe Roller event to be given in January Year2 by an important local charity. (The party would last the usual three hours.) The guest list for this charity event includes many prominent individuals that management would like to land as future clients. Management is confident that these potential customers would be favorably impressed by the company's services at the charity event. The individual who is organizing the charity's fund-raising event has indicated that they have already received a bid of $44 from another catering company for a similar style event.

6. How low could FreshRoll bid for the charity event, in terms of a price per guest, and still not lose money on the event itself?

7. Do you think FreshRoll should bid below the normal $54 per guest price for the charity event? Provide arguments for and against a low bid. State your final decision.

FreshRoll Catering provides a "Deluxe Roller service that has proven to be popular and attracts many repeat customers. FreshRoll provides high quality ingredients and the specially trained staff help guests roll sushi while enjoying cocktails and other prepared appetizers. The business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times The usual price per guest for the Deluxe Roller is $54. FreshRoll has estimated the cost per guest for the Deluxe Roller service as follows Direct costs $13.00 $ 6.00 18.00 Food Drink Labor (1 Overhead costs 1.67 Miscellaneous (1 hr. x 7.157.15 $45.82 Rent (1 hr. x$1.67) Total cost per guest Labor includes food preparation and service. Here is the detail of how the one-hour for labor in the table above was computed: FreshRoll provides 1 server/tutor for every 4 guests so that is.75 hours per guest for an average 3-hour party. Another 25 hours per guest is needed for the food preparation. These workers are hired only as needed and are paid only for the hours they actually work (The detail is for background only. You can trust my computation of 1-hour per guest.) Management elieves that the direct costs above are reasonably reliable. To compute the overhead costs per hour used above (Rent and Miscellaneous), management used the following summary of costs and labor hours over the last year. (Example: Total miscellaneous OH cost/total labor hours . $7.15 per labor hour.) Miscellaneous overhead includes accounting and legal costs, utilities, supplies and other miscellaneous items. LaborHours Misc OH Costs Rent Costs 2.800 March 3,000 8,000 Apri 200 34,800 2,300 June 8,000 8,600 1,800 7.500 7,000 tober 411,900 Total Per labor hour