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Nady [450]
3 years ago
15

Kim is thinking of organizing a fundraiser to support a local charity. She has planned to rent a banquet hall and provide the gu

ests with food, entertainment, and various party favors. She has decided to charge $500 a person. After researching around town, Kim has discovered the following costs:
Fixed Costs
Rental fee of banquet hall $150,000Advertising 50,000Entertainment 4,000Variable Costs Per Guest
Food $12Other miscellaneous costs 8How many guests must attend in order for Kim to break even?
Business
1 answer:
mina [271]3 years ago
4 0

Answer:

It would need 549 guests to break even.

Explanation:

The first step will be know the Contribution Margin:

Sales \:Revenue - Variable\: Cost = Contribution \:Margin

Variable Cost

Food 120

Other 8

Total 128

Next we do the Contribution Margin, which represent how much cash each guest generates to pay the fixed cost

500- 128 = 372

Then we Calculate the total fixed cost we need to pay

Rental 150,000

Advertising 50,000

Entertainment 4,000

Total 204,000

Now we calculate the Break Even Point in units (for this case, in guests)

\frac{Fixed\:Cost}{Contribution\: Margin} = Break \: Even \: Point_{guests}

\frac{204,000}{372} = 548.34

It would need 549 guests to break even.

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Ne4ueva [31]

Answer:

B. Power is proportionally spread to top, middle and first line managers

Explanation:

Decentralization is a do of the power structure in an organization or firm, in which the power or authority to make a decision is spread throughout each line or department of the firm or organization.

The main advantage of decentralization is that it allows swift decisions to be taken, and reduces unnecessary bureaucracy.

Hence, the statement that is correct of decentralization is "Power is proportionally spread to top, middle and first-line managers"

8 0
3 years ago
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had ap
podryga [215]

Answer:

Cost of Goods Sold will decrease by $2,679 after proration.

Explanation:

Under-applied or over applied overhead:

= Overhead incurred - Overhead applied

= $76,000 - $79,700

= (-$3,700)

Therefore, the Cost of Goods Sold after the proration:

= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods

= ($3,700 × $57,700) ÷ ($57,700 + $22,000)

= $213,490,000 ÷ $79,700

= $2,679

Hence, the Cost of Goods Sold will decrease by $2,679 after proration.

3 0
3 years ago
Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced a
worty [1.4K]

Answer:

Break-even points = 265.38

Explanation:

Given:

Fixed cost = $3,450

Variable costs = $12

Selling price = $25

Number of balls sold = 300

Find:

Break even costs

Computation:

Contribution per unit = Sales - Variable costs

Contribution per unit = $25- $12

Contribution per unit = $13

Break-even points = Fixed cost / Contribution per unit

Break-even points = $3,450 /$13

Break-even points = 265.38

6 0
3 years ago
PLEASE HELP!!!!!
Finger [1]
The answer is C, savings and loan institutions
4 0
3 years ago
12. An account having a credit balance in general ledger will be classified as:
vodka [1.7K]
I believe it’s all of the above
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3 years ago
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