1. If the contribution margin for Independent Lab stays constant and its fixed costs increase from $8,000 to $12,000, then the lab's break-even quantity
increases
decreases
stays the same
2. A Greener World expects to have $15,000 in fixed costs. If its fixed costs do not change but the amount each marcher raises through pledges declines from $55 to $50 and its variable cost/unit increases from $25 to $30, how much will its break-even quantity increase?
4-36. Millbridge Animal Protective Services (MAPS) is planning its spring awards dinner as a fundraising event. It is planning to charge each attendee $150. Feast Hall, the site of the dinner, will charge MAPS $5,000 for the use of its posh VIP Room and $50 per plate for food. The VIP Room has a capacity of 180 people. Rocky Mount and the Tar Heels (one band) will provide the entertainment for their standard performance fee of $1,000 per night.
How many people would need to attend in order for MAPS to break even?
If MAPS sells 100 tickets for the dinner, what is the average cost to MAPS for each person with a ticket?
Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per week. It costs the center $30 per week for supplies and snacks for each child. How many children have to come to the Center each day for it to break even?
If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)
increases
decreases
stays the same
3. Answer the following questions about break-even analysis.
Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per week. It costs the center $30 per week for supplies and snacks for each child. How many children have to come to the Center each day for it to break even?
If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)