Question

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event. The committee members would like to charge 35 per person for the evening's activities.
(a) Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend).

Answer 1

Calculate the break-even point for the dinner dance (in terms of the number of people that must be present)

The Break-even point is 400 persons  

Calculations:  

Dinner (per person)                          $18      

Favors and program (per person)  $2        

Variable Cost per person                  $20      

 

Band                                                                          $ 2,800

Rental of Ballroom                                                          $900

Professional entertainment during intermission  $ 1,000

Tickets and Advertising                                          $ 1,300

Total Fixed Costs                                                          $ 6,000

 

Price per ticket                                                          $35

Less: Variable Cost per person                                  $20

Contribution Margin                                                  $15

 

Break number of persons must attend the dinner  

(Total Fixed Cost/Contribution per person)  

                                                                                (6000/15) 400.

The break-even point is the point where the total cost equals the sales, i.e. there is no loss or gain for small businesses, this means that the cost of production equals the sales of the product. It means that it has reached the production stage.

Learn more about the break-even point at

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