New City Band As the volunteer business manager for the New City Band (City Band), you are...

50.1K

Verified Solution

Question

Finance

New City Band
As the volunteer business manager for the New City Band (CityBand), you are responsible for preparing the operating budget forthe organization’s upcoming summer concert season. Each year, CityBand presents up to 20 weekend performances, depending on weatherconditions. The concerts are free to the public, but the band hangsa pot from the bandstand and people leave small donations in it. Onaverage, City Band gets $100 in donations at each of itsperformances. In addition to donations, New City pays the band$3,000 per season plus $125 for each performance.
City Band also has a small endowment of $100,000 on which itexpects to earn 3.5 percent in the coming fiscal year. City Band’strustees have decided to use that money to pay for operatingexpenses if they need to.
City Band pays its conductor $3,000 for the summer season andhas an insurance policy to protect it against any loss of equipmentor damage to the bandstand. That policy costs the band $500 for thesummer plus $25 per performance.
New music costs the band $200 per year. Following GenerallyAccepted Accounting Principles, the band recognizes musicacquisitions as expenses in the year the music is acquired. Inaddition, City Band pays music publishers an average of $40 perconcert for the rights to perform certain pieces in its repertoire.The band has an average of 60 musicians at each of itsperformances. Each musician is paid $5 per performance.
Question 3. Calculate City Band’s total contribution marginper concert.

Answer & Explanation Solved by verified expert

3.9 Ratings (777 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

New City BandAs the volunteer business manager for the New City Band (CityBand), you are responsible for preparing the operating budget forthe organization’s upcoming summer concert season. Each year, CityBand presents up to 20 weekend performances, depending on weatherconditions. The concerts are free to the public, but the band hangsa pot from the bandstand and people leave small donations in it. Onaverage, City Band gets $100 in donations at each of itsperformances. In addition to donations, New City pays the band$3,000 per season plus $125 for each performance.City Band also has a small endowment of $100,000 on which itexpects to earn 3.5 percent in the coming fiscal year. City Band’strustees have decided to use that money to pay for operatingexpenses if they need to.City Band pays its conductor $3,000 for the summer season andhas an insurance policy to protect it against any loss of equipmentor damage to the bandstand. That policy costs the band $500 for thesummer plus $25 per performance.New music costs the band $200 per year. Following GenerallyAccepted Accounting Principles, the band recognizes musicacquisitions as expenses in the year the music is acquired. Inaddition, City Band pays music publishers an average of $40 perconcert for the rights to perform certain pieces in its repertoire.The band has an average of 60 musicians at each of itsperformances. Each musician is paid $5 per performance.Question 3. Calculate City Band’s total contribution marginper concert.