Chi Omega Sorority is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event:
Dinner (per person) $ 7
Favors and programs (per person) 3
Orchestra 2,600
Tickets and advertising 1,800
Riverboat Rental 5,200
Floor show and strolling entertainers 1,400
The committee members want to charge $30 per person for the evening’s activities.
3. If Chi Omega want to make a profit of $5,000 and charge $30 per ticket, how many people must buy tickets? Chi Omega decides to sell tickets for $35 each and the costs will remain the same as shown in the table above. If they believe they can sell 800 tickets, what will be their margin of safety in dollars and as a percent of sales?
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