Answer the following questions using the information below:
Alice Springs University is planning to hold a fundraising banquet at one of the local golf clubs.It has two options for the banquet:
OPTION 1: Crestview Golf Club
a. Fixed rental cost of $1000
b. $12 per person for food

OPTION 2: Tallgrass Golf Club
a. Fixed rental cost of $3000
b. A caterer who charges $8.00 per person for food

-Which option provides the greatest operating profit if 600 people attend?

Question

Answer the following questions using the information below:
Alice Springs University is planning to hold a fundraising banquet at one of the local golf clubs.It has two options for the banquet:
OPTION 1:	Crestview Golf Club
	a. Fixed rental cost of $1000
	b. $12 per person for food

OPTION 2:	Tallgrass Golf Club
	a. Fixed rental cost of $3000
	b. A caterer who charges $8.00 per person for food

-Which option provides the greatest operating profit if 600 people attend?

Quizplus · Accepted Answer

Option 2: 
- Rental cost of $500 
- $40 per person 
- Revenue from 600 people: 600 x $40 = $24,000 
- Total cost: $1,500 (rental + food cost for 600 people) 
- Operating profit: $22,500

Option 1: 
- Rental cost of $1,000 
- $35 per person 
- Revenue from 600 people: 600 x $35 = $21,000 
- Total cost: $1,600 (rental + food cost for 600 people) 
- Operating profit: $19,400

Therefore, option 2 provides the greatest operating profit.

Answer the Following Questions Using the Information Below