Homework SourseTopeka homeless shelter THS has an annual fundraising dinne
Topeka homeless shelter ( THS) has an annual fund-raising dinner. The fixed costs of the dinner are $10,000 and variable cost are $75 per attendee. The facility where the event is held can accommodate 500 people.
Q1. If THS charges $275 per ticket how many people would have to attend the gala to break even ?
Q2. If THS sold out at the break even price, how much how much total revenue would the dinner raise ?
Topeka homeless shelter ( THS) has an annual fund-raising dinner. The fixed costs of the dinner are $10,000 and variable cost are $75 per attendee. The facility where the event is held can accommodate 500 people.
Q1. If THS charges $275 per ticket how many people would have to attend the gala to break even ?
Q2. If THS sold out at the break even price, how much how much total revenue would the dinner raise ?
Q1. If THS charges $275 per ticket how many people would have to attend the gala to break even ?
Q2. If THS sold out at the break even price, how much how much total revenue would the dinner raise ?
Solution
Q1. Break even no of people = Fixed Cost/( Charge per ticket - Variable cost per ticket) = 10,000/( 275 -75) = 50
Q2. Total Revenue at Break even price = Break evn Price * No of seats = 275 * 500 = 137,500
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