PROBLEM SET #$12$: CVP Analysis

Problem A: The Accounting Society at SoCal University is planning its annual fundraising

extravaganza, the Bean Counter's Ball. The AS expects to charge $$100$ per ticket. The following

projected costs were culled from last year's ball $[$with $200$ attendees$]$ and updated to reflect current costs:

Costs $-1,2,3$: These costs have been obtained using competitive bids based on number ordered.

Each requires a minimum order of $150$ and the actual number must be communicated to vendors $5$

days prior to the event.

Costs $-4,7,8$: These costs are fixed fee and must be booked far in advance.

Cost$-5$: Programs are designed in advance and then printed out based on tickets sold. Again, there

is a minimum order of $150.$

Costs $-6$: Tickets are purchased in advance and in a of $500.$ The tickets, along with Programs

information about this year's event including this year's date, theme, unique design, and logo$.$

Required:

Use the information above to prepare a contribution approach income statement.

Use the information in #$1$ to calculate the following:

a$.$ Break$-$even in tickets and sales dollars.

b$.$ Net income if $-150,250,$ or $300$ were sold.

c$.$ Number of tickets that must be sold in order to earn $-$$$10,000,$$$25,000,$$$50,000.$

d$.$ Assume $200$ attendees, calculate price per ticket to earn $-$ $$10,000,$$$25,000,$$$50,000.$ Prepare a contribution income statement in good form $$ include$/$ list all individual VC and FC

Calculate all requested values a thru d:

a$.$Break$-$even in tickets and sales dollars.

b$.$ Net income if $-150,250,$ or $300$ were sold.

N c$.$ umber of tickets that must be sold in order to earn $-$ $$10,000,$ $$25,000,$ $$50,000.$

A d$.$ ssume $200$ attendees, calculate price per ticket to earn $-$ $$10,000,$ $$25,000,$ $$50,000.$