EXERCISE 4-11 Break-Even Analysis; Cost-Volume-Profit Graphing [LO2, LO4, LO5] Horace Society is planning its annual Western Fair Raceway Gala. The Gala committee has as- sembled the following expected costs for the event:
The committee members would like to charge $40 per person for the evening's activities.
Required:
1. Compute the break-even point for the Gala (in terms of the number of people that must attend).
2. Assume only 200 people attended the Gala last year. If the same number attend this year, what price per ticket must be charged to break even?