The SRC of the University intends to organise an end of year jamboree for all graduating post-graduate students at the end of the academic year. The proposed venue can be obtained at a rent of GHC10,000 per night. There is a resident band which also charges GHC2,500 per night’s performance. The organisers want to serve each attendant soft drinks worth GHC12.50. The purpose of the project is to raise some funds to provide more study joints on campus for students.

Required:  a) Ascertain the charge per attendant to enable the Council break even if they expect

         500 attendants.                                                                                      

                 b) How many attendants will the Council need to make a profit of GHC2,500

                                                                                                                                   

                 c) If the charge per attendant is increased to GHC40.00, how many attendants will be

                     needed to break even.                                                                            

                 d) Should the charge of GHC40.00 per attendant be maintained, to what extent should

                     the soft drinks be augmented so that they would break even with the 500 attendants?

                                                                                                                                   

Answer rating: 100% (QA)

Fixed Costs Rent Band charges they do not vary with the number of attendants GHC10000 GHC2500 GHC125... View the full answer