The parent group of the local university football team organizes an end of training camp bar-b-que dinner each year. The 110 player roster and 12 coaches eat for free, and ticket sales are used along with a fixed amount subsidy to fund the event. Last season 250 meals were produced and served. The following financial statement was prepared by one of the team parents:

* The deficit was covered by a one-time donation from a parent whose son graduated and is consequently no longer on this years team.
Required:
Calculate the price per ticket that must be charged to breakeven based on the following assumptions:
- the number of players and coaches meals remain the same, but the number of meals sold increases by 20
-the fixed costs are the same as last year
-the variable costs per unit are the same as last year
-the subsidy will remain at $3,000

Question

The parent group of the local university football team organizes an end of training camp bar-b-que dinner each year. The 110 player roster and 12 coaches eat for free, and ticket sales are used along with a fixed amount subsidy to fund the event. Last season 250 meals were produced and served. The following financial statement was prepared by one of the team parents:

* The deficit was covered by a one-time donation from a parent whose son graduated and is consequently no longer on this years team.
Required:
Calculate the price per ticket that must be charged to breakeven based on the following assumptions:
- the number of players and coaches meals remain the same, but the number of meals sold increases by 20
-the fixed costs are the same as last year
-the variable costs per unit are the same as last year
-the subsidy will remain at $3,000

Quizplus · Accepted Answer

The Answer of The parent group of the local university football team organizes an end of training camp bar-b-que dinner each year. The 110 player roster and 12 coaches eat for free, and ticket sales are used along with a fixed amount subsidy to fund the event. Last season 250 meals were produced and served. The following financial statement was prepared by one of the team parents:

* The deficit was covered by a one-time donation from a parent whose son graduated and is consequently no longer on this years team.
Required:
Calculate the price per ticket that must be charged to breakeven based on the following assumptions:
- the number of players and coaches meals remain the same, but the number of meals sold increases by 20
-the fixed costs are the same as last year
-the variable costs per unit are the same as last year
-the subsidy will remain at $3,000

The Parent Group of the Local University Football Team Organizes