Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Sep 2017 My Price 4.00

banquet department

The fixed cost of the banquet department of a hotel is $400 a day. A customer selected a menu for 100 persons that would have a food cost of $6.00 per person, a variable wage cost of $1.75 per person, and other variable costs of $0.25 per person.

a. Calculate the total cost per person if this banquet were booked.

b.|

c. The customer does not want to pay more than $11.25 per person for this function. She is a good customer; she has booked many functions in the banquet room in the past and is expected to do so in the future. The function is three days from now, and there is no likelihood you will be able to book the room for any other function. Explain why you would, or would not, accept the $11.25 per-person price. (Note: Assume that the hotel has only one banquet room.)

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 07:09 PM My Price 4.00

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