ACC 310F Study Guide - Midterm Guide: Contribution Margin, Radio City Music Hall, Shortage
Document Summary
Culinary creations specializes in catering weddings, corporate outings, and dinner parties. As most of these events take place on weekends, culinary is booked solid friday through sunday. Weekdays, however, are far less active and culinary often cannot generate enough business to keep the staff busy. A charity organization has just called to ask whether culinary creations could cater its annual fundraising dinner. The charity would like to hold the dinner either on a wednesday or on a saturday. The charity expects 150 people to attend if the dinner is on wednesday and 200 people if the dinner is on saturday. Because it has a limited budget, the charity is willing to pay only per attendee, regardless of the day scheduled. Culinary creations" owner, monica, wants you to handle the details of the deal. While monica is willing to reduce her normal profit markup for charitable causes, she does not want to lose money on the event.
