Answered>Order 7574

The Student Senate is sponsoring the biggest Christmas dance in the University’s history. A ticket allows a couple to enjoy a dinner for two, attend the dance, and receive a favor to remember the event by. Tickets will be sold for couples only. Although a not-for-profit function, it must breakeven. Here are the costs involved:

           Fixed costs of the event                                       Variable Costs per couple

           Lodge rental for the evening        $1000           Party favor per ticket  $2.00

           Fantastic Five band                           400            Dinner for two             16.00

           Advertising costs                                 65            Waitress tip (13%)       2.08

           Ticket printing (800 tickets)               150

           Duplicate and mail flyer                     35

5. If you are cautious, and believe only 500 tickets can be sold (but still want to give the $1000 to charity), what price should you charge per ticket (sorry – you still have to pay the printer for all 800 tickets)?

6. What is the DOL in (5) above (assume that $27 per ticket was charged, $1000 was to be given to charity, but that only 600 tickets were sold)?