The local chapter of the Rotary Foundation is planning a fundraiser. They estimate that renting the auditorium
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a. What is the required attendance for the chapter to raise $21,000 toward charity?
b. The chapter also proposes to have a cash bar at the event. They estimate that the average patron would spend $20 and that the contribution margin ratio would be 50%. How does this data change your answer to part (a)?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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