Business, 17.01.2020 03:31 jordystafford8186
The museum of america is preparing for its annual appreciation dinner for contributing members. lastâ year, 525 members attended the dinner. tickets for the dinner were $ 24 per attendee. the profit report for lastâ year's dinner follows.
ticket sales $12,600
cost of dinner 15,300
gross margin 2,700
invitations and paperwork 2,500
profit (loss) $ 5,200
this year the dinner committee does not want to lose money on the dinner. to achieve itsâ goal, the committee analyzed lastâ year's costs. of the â$15,300 cost of theâ dinner, â$9,000 were fixed costs and â$6,300 were variable costs. of the â$2,500 cost of invitations andâ paperwork, â$1,975 were fixed and â$525 were variable.
requirement:
1. prepare last year's profit report using the contribution margin format.
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