Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event:
- Dinner (per person) $7
- Favors and program (per person) $3
- Band $1,500
- Tickets and advertising $700
- Riverboat rental $4,800
- Floorshow and strolling entertainers $1,000
The committee members would like to charge $30 per person for the evening's activities.
Required:
1.Compute the break-even point for the Extravaganza (in terms of the number of persons that must attend).
2.Assume that only 250 persons attended the Extravaganza last year. If the same number attend this year, what price per ticket must be charged to break even?