Reference no: EM133121340

Question -

a. If an event has fixed costs of $30,000, and the price of an admission ticket is $75, with variable costs per attendee adding up to $35, how many people must attend in order for the event to break even?

b. If the organization wants to do better than reaching breakeven, and in fact wants BEFORE-TAX profits of $10,000 from the event, how many people must attend it?

c. Find your new answer if instead, the organization wants AFTER-TAX profits of $10,000, and the tax rate is 42%. How many people must attend under these conditions?

d. What would be the margin of safety (in terms of attendees) achieved by the organization if the changes in part b were to occur? Show your calculation.

e. If variable cost per guest at this event suddenly increased to $39, find the new beak-even point in units (guests).