Question

EXERCISE 5-16 Break-Even Analysis and CVP Graphing (L05-2, L05-4, L05-5] The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committe has assembled the following expected costs for the event: $18 $2 Dinner (per person)... Favors and program (per person) ... Band .. Band ................................ Rental of ballroom ................ Professional entertainment during intermission ..... Tickets and advertising ... ........ $2,800 $900 $1,000 $1,300 The committee members would like to charge $35 per person for the evening's activities. Required: 1. Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend). 2. Assume that last year only 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? 3. Refer to the original data ($35 ticket price per person). Prepare a CVP graph for the dinner- dance from zero tickets up to 600 tickets sold.