Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-Which option has the lowest breakeven point?
A) Option one
B) Option two
C) Both options have the same breakeven point.
D) The lowest breakeven point cannot be determined.

Question

Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
  
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-Which option has the lowest breakeven point?
A) Option one 
B) Option two 
C) Both options have the same breakeven point. 
D) The lowest breakeven point cannot be determined.

Quizplus · Accepted Answer

Option one: $30X - $12X - $1,000 - $1,800 - $800 = 0; X = $200
Option two: $30X - $8X - $3,000 - $1,800 - $800 = 0; X = $255

Answer the Following Questions Using the Information Below