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A Non-Profit Organization Is Planning a Raffle to Raise Money

Question 47

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A non-profit organization is planning a raffle to raise money. It has two options for tickets. The first option is to do the tickets by hand, with fixed costs of $50 and variable costs of $.05 per ticket. The second option is to outsource production. This would result in fixed costs of $500 and variable costs of $.01. If the organization plans to sell 10,000 tickets which option should it choose?

Correct Answer:

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50 + .05V = 500 + .01V, V = 11,250 ticke...

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