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Question - A student association has hired a band and a caterer for a graduation party. The band will charge a fixed fee of $1 000 for an evening of music, and the caterer will charge a fixed fee of $600 for the party set-up and an additional $9 per person who attends. Snacks and soft drinks will be provided by the caterer for the duration of the party. Students attending the party will pay $5 each at the door.
Required -
1. Draw a graph depicting the fixed cost, the variable cost and the total cost to the student association for different attendance levels.
2. Suppose 100 people attend the party. What will be the total cost to the student association? What will be the cost per person?
3. Suppose 500 people attend the party. What will be the total cost to the student association and the cost per attendee?
4. Draw a graph depicting the cost per attendee for different attendance levels. As president of the student association, you want to request a grant to cover some of the party costs. Will you use the per attendee cost numbers to make your case? Why or why not?
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