Problem 1-17 Katherine D’ Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even? (F) Fixed Cost= $1 ,400. O (V) variable cost- $3. 00 (S) selling Price- $5. 0 BEEPS> x 700 In order to break even selling each program for $5, Katherine would have to sell 700 programs. Problem 1-20 Mystic Fairs (see Problem 1-19) is considering raising the selling price of each cue to $50 instead of $40. If this is done while the costs remain the same, what would the new break-even point be? What would the total revenue be at this break- even point? 0=sex-f-vs. x- 96 = $4,800. 00 By raising the selling price of the cue from $40 to $50 the break-even point would be 96 and the total revenue at this break-even point would be $4,800. 0. Problem 1-22 Golden Age Retirement Planners specializes in pro- viding financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising and other incidentals is about $10,000 per seminar. The cost of the materials and special gifts for each attendee s $60 per person attending the seminar.
The company charges $250 per person to attend the seminar as this seems to be competitive with other companies in the same business. How many people must attend each seminar for Golden Age to break even? (F) Fixed cost= $11 ,O. O (V) Variable Cost= $60. 00 (S) selling Price: $250. 00 BEEPS> O=sex-f-vs. 57. 89 To reach break-even the Golden Age seminar must have an attendance of 58 people. Problem 1-23 A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for business dents.
While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs) cost $5 each.