Southwestern College is planning to hold a fund raising banquet at one of the local...
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Accounting
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
OPTION one: Crestview Country Club
a. Fixed rental cost of $1,000
b. $12 per person for food
OPTION two: Tallgrass Country Club
a. Fixed rental cost of $3,000
b. $8.00 per person for food
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event. Which option provides the greatest degree of operating leverage if 600 people attend?
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