You are planning a retirement party and have rented space at a capacity of 80 people at a total cost of $800 for the evening. Food is expected to cost $34 per person. Drinks will be provided to attendees at a rate of $8 per drink and each attendee is expected to have on average, two drinks. By how much will the variable cost line rise on a graph for each additional attendee?
A)$42
B)$50
C)$52
D)$60

Question

Quizplus · Accepted Answer

Food cost + Drink cost = Total Variable cost per attendee; $34 + (2 x $8) = $50

You Are Planning a Retirement Party and Have Rented Space