Question: Hartford Symphony Guild is planning its annual Dinner dance. The dinner dance committee has assembled the following expected costs for the event:
Dinner (per person) …………………………. $ 20
Favors and program (per person) …………… 2
Orchestra …………………………………….. 2,000
Rental ballroom ……………………………… 900
Professional entertainment during intermission 1,000
Tickets and advertising ……………………… 1,300
The committee members would like to charge $ 35 per person for the evening activities.
1) Prepare a CVP graph for the dinner-dance from a zero level of activity up to 1000 tickets sold. Number of persons should be placed on the horizontal (x-axis), and dollars should be placed on the vertical (y-axis). What is the break-even point – persons and dollars (from your graph)? Use the graph to answer the following questions.
2) If the selling price goes up to $40, what is the new breakeven point – persons and dollars?
3) Management has decided to make some improvements that will push: Rental of the ballroom by $1,000, Professional entertainment during intermission by $2,000, and Tickets and advertising by $1,000. The Selling price is $40. What is the new break-even point – persons and dollars?
Draw three separate graphs in different worksheets name them QUES1, QUES2 and QUES3.
Put Selling Price, Variable Price and Fixed Price in three distinct cells so that you can make use of their cell references in the tables. Any variations on any of these cells will have an automatic effect on both the tables and graphs.