PB.2 Fixed costs of the banquet unit are $600/day. An event for 100 guests has...
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Accounting
PB.2 Fixed costs of the banquet unit are $600/day. An event for 100 guests has a food cost of $8.50/person, labor costs of $1.75/person and other variable costs of $1.95/person
a. Calculate the total cost per person at this event
Total Fixed Costs
Food/guest
Labor/guest
Other costs/guest
Total Variable Cost/Guest
Fixed Cost per Guest
Total Cost per Guest
b. What should the total price and total price per person be if a 30% operating income is desired?
Price Per Guest (30% income)
Total Revenue (30% income)
. Customer is a regular and does not want to pay more than $16.25/person. No other event could be booked. What are the comparative costs? Would you accept that price?.
Function accepted at $16.25
Function not accepted
Total Revenue
Food Cost
Variable Wage
Other Variable Costs
Fixed Costs
Total Cost
Net Loss
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