public Budgeting and finance Association is planning its annual conference. The
conference hotel has quoted the following prices for services:
Thursday afternoon: Conference facilities rental:
service: $10 per person
equipment rental: $55
reception: $25 person
Friday: Conference facilities rental:
service, morning and afternoon: $15 per person
breakfast: $15 per person
equipment rental: $150
Saturday: Conference facilities rental:
Breakfast: $15 per person
service: 10 per person
Program materials and marketing
would cost about $550. The association charged $130 for each participant last
year and would like to use the same price this year.
a) Prepare a break-even analysis for
the conference and determine the break-even attendance level.
b) Suppose the association wanted to
encourage student participation by charging a rate that would cover only the
cost directly caused by their attendance. What price would you charge?
c) Prepare a line-item budget for
the event if you expect 110 people to attend.