Solved

Southwestern College Is Planning to Hold a Fund Raising Banquet \quad

Question 271

Multiple Choice

Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
OPTION 1: Crestview Country Club
\quad \quad \quad a. Fixed rental cost of $1,000
\quad \quad \quad b. $12 per person for food

OPTION 2: Tallgrass Country Club
\quad \quad \quad \quad a. Fixed rental cost of $3,000
\quad \quad \quad \quad b. A caterer who charges $8.00 per person for food

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-What is the operating income for each option if 600 people attend?


A) $14,400 and $12,400 respectively
B) $9,800 and $10,200 respectively
C) $7,900 and $8,000 respectively
D) $7,200 and $7,600 respectively

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents