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Charlie was given the idea to add an optional guest mini hamper to his wedding...

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Accounting

Charlie was given the idea to add an optional guest mini hamper to his wedding catering service. Each adult guest that attends the wedding leaves with a mini hamper. He is contemplating this idea but is unsure how many hampers would need to be sold at a wedding to make a profit. He believes the variable costs to be the following per mini hamper:

Coal River Chocolates = $4

Mini basket = $2

Picolo sparkling wine = $6

Labour to wrap one hamper = $3

Cellophane for five hampers = $10

There are no fixed costs to attribute to the hampers. The hampers would add a cost for the customer of $35 per guest at each wedding and Charlie does not want to engage in this idea unless he makes a profit at least $600 per wedding.

Required

What would be the minimum adult guests at a wedding needed to make the required $600 profit per wedding?

If he supplies 50 hampers per wedding what would the margin of safety be in dollars?

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