Question: The Real Deal is a social organization that performs charitable work in its local community. The club has the following monthly cost and fee information:

The Real Deal is a social organization that performs charitable work in its local community. The club has the following monthly cost and fee information: monthly membership fee per member, $60; monthly variable cost of service per member, $25; and monthly fixed service cost, $3,500. Costs are extremely low because volunteers provide almost all services and supplies. Excess of fees over service cost are used to support charitable activities.
a. Prepare a break-even chart for The Real Deal.
b. Prepare a profit-volume graph for The Real Deal.
c. At this time, The Real Deal has only 120 members. Which of the preceding items (break-even chart or profit-volume graph) would you use in a speech to the membership about the benefits of recruiting additional members? Why?

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a b c The breakeven chart would probably be more helpful The point could be made that the club has ... View full answer

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