The parent group of the local university football team organizes an end of training camp bar-b-que dinner

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Question:

The parent group of the local university football team organizes an end of training camp bar-b-que dinner each year. The 110 player roster and 12 coaches eat for free, and ticket sales are used along with a fixed amount subsidy to fund the event. Last season 250 meals were produced and served. The following financial statement was prepared by one of the team parents:

Revenue:

Ticket sales $ 1,280

Subsidy3,000

Expenditures:

Food3,750

Supplies300

Fuel125

Bar-b-que rental500

Surplus/(deficit)*$ (395)

* The deficit was covered by a one-time donation from a parent whose son graduated and is consequently no longer on this years team.

Required:

Calculate the price per ticket that must be charged to breakeven based on the following assumptions:

- the number of players and coaches meals remain the same, but the number of meals sold increases by 20

-the fixed costs are the same as last year

-the variable costs per unit are the same as last year

-the subsidy will remain at $3,000