Use the information below to answer the following question(s).Big Sports University is planning to hold a fund raising banquet at one of the local country clubs.It has two options for the banquet:
1.Foothills Country Club
2.Downhill Country Club
Big Sports has budgeted $900 for administrative and marketing expenses.It plans to hire a band, which will cost another $400.Tickets are expected to be $40 per person.Any other items required for the event will be donated by its local business supporters.
-What is the "operating income" assuming 250 people attend and option two is chosen?

Question

Use the information below to answer the following question(s).Big Sports University is planning to hold a fund raising banquet at one of the local country clubs.It has two options for the banquet:
1.Foothills Country Club
  2.Downhill Country Club
  Big Sports has budgeted $900 for administrative and marketing expenses.It plans to hire a band, which will cost another $400.Tickets are expected to be $40 per person.Any other items required for the event will be donated by its local business supporters.
-What is the "operating income" assuming 250 people attend and option two is chosen?

Quizplus · Accepted Answer

- Administrative and marketing expenses: $900
- Cost of band: $400
- Total expenses: $1,300
- Revenue from tickets: 250 x $40 = $10,000
- Operating income: $10,000 - $1,300 = $8,700
Therefore, the best choice would be option two, Downhill Country Club, as it would result in a higher operating income.

Use the Information Below to Answer the Following Question(s)