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Use the Following Data to Answer the Next 3 Questions

Question 8

Multiple Choice

Use the following data to answer the next 3 questions. The Glorious hotel generally charges conference organisers $65 per delegate attending a one day conference. It also incurs $10 in variable costs per delegate. Over the last few years it has averaged 80 delegates for each conference sold. Last year the hotel incurred $88,000 of fixed costs and allocated $2,000 to each of the 44 conferences that it hosted.
-If the fixed costs for the hotel are truly $2,000 per conference, how many delegates must be attracted to one of its conferences in order for it to breakeven?


A) 36.36 delegates
B) 42.42 delegates.
C) 54.54 delegates.
D) 78.78 delegates
E) None of the above

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