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The 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: $425 Coffee-break service: $10 per person Audiovisual equipment rental: $55 Evening reception: $25 per person Friday Conference facilities rental: $750 Coffee-break service, morning and afternoon: $15 per person Continental breakfast: $15 per person Luncheon: $20 per person Audiovisual equipment rental: $150 Saturday morning Conference facilities rental: $375 Continental breakfast: $15 per person Coffee-break service: $10 per person Audiovisual rental: $75 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 chart 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 costs directly caused by their attendance. What price would you charge? c. Prepare a budget for the event if you expect 110 people to attend.
Mikesell, John. Fiscal Administration (Page 146). Cengage Learning. Kindle Edition.
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