90.2K

Verified Solution

Link Copied!

Sandy and Manny work for a non-profit and are charged with conducting some health and wellness workshops aimed to provide life style and knowledge for diabetics. To encourage commitment to the recommendations, the organization plans to charge each attendee a modest fee. Although the organization is not expecting to generate income from the workshop, they want the total amount of the registration fees collected for the workshop to exactly cover the total cost. The estimated total cost of the latest workshop is $500 in fixed costs and $15.00 in variable costs per attendee. Based on this information, and the intent to just break-even, Sandy and Manny set the registration fee at $25.00 per attendee.

Required: The cost function Sandy and Manny used to estimate the costs was completely accurate and every attendee paid the required registration fee of $25.00. At the end of the day when they tallied up the receipts, they found they had collected $925.00. Compared to the actual total cost, Sandy and Manny found that:

1. The receipts exactly covered total costs.
2. The receipts did not cover the total cost of the workshop and they has a shortage of ____________ (An exact dollar amounts expected if you select this answer)
3. The receipts more than covered the total cost of the workshop and Sandy and Manny found they had an extra $______________________ after covering all the costs. (An exact dollar amount expected if you select this answer.

Answer & Explanation Solved by verified expert

See Answer