Phi Kappa is planning to hold a seminar for students at the University Centre.It has two options: $$\text { OPTION 1: Fixed rental cast of } \$ 1,000 \text { and } \$ 12 \text { per person for baoks }$$ or
$\text { OPTION 2: Fixed rental cost of } \$ 3,000 \text { and } \$ 8 \text { per person for books }$
Tickets will be $5 per student.Other items will be donated by recruiters wishing to network with students.Which option will cause the biggest loss if very few students attend?

Question

Phi Kappa is planning to hold a seminar for students at the University Centre.It has two options: $$\text { OPTION 1: Fixed rental cast of } \$ 1,000 \text { and } \$ 12 \text { per person for baoks }$$ or
$\text { OPTION 2: Fixed rental cost of } \$ 3,000 \text { and } \$ 8 \text { per person for books }$
 Tickets will be $5 per student.Other items will be donated by recruiters wishing to network with students.Which option will cause the biggest loss if very few students attend?

Quizplus · Accepted Answer

Option 1 has a higher fixed cost, so it will result in a bigger loss if few students attend.

Phi Kappa Is Planning to Hold a Seminar for Students OPTION 1: Fixed rental cast of $1,000 and $12 per person for baoks \text { OPTION 1: Fixed rental cast of } \$ 1,000 \text { and } \$ 12 \text { per person for baoks } OPTION 1: Fixed rental cast of $1,000 and $12 per person for baoks

Phi Kappa Is Planning to Hold a Seminar for Students $\text { OPTION 1: Fixed rental cast of } \$ 1,000 \text { and } \$ 12 \text { per person for baoks }$