Required:
1. Estimate the contribution to profit of a standard 180-guest cocktail party if Chavez charges her usual price of $31 per guest. (In other words, by how much would her overall profit increase?)
2. How low could Chavez bid for the charity event in terms of a price per guest and still not lose money on the event itself?
3. The individual who is organizing the charity's fund-raising event has indicated that he has already received a bid under $30 from another catering company. Do you think Chavez should bid below her normal $31 per guest price for the charity event? Why or why not?