02 Mar As a member of a local advocacy group for low-inco
As a member of a local advocacy group for low-income families, you have been placed incharge of organizing a one-day seminar on welfare reform The costs for the event are asfollows:Rent for auditorium:$5,000Faculty:$2,500Breakfast:$10 per personLuncheon:$15 per personMaterials:$25 per personAdvertising:$1,500a) What are the average variable costs of the seminar?b) What are the fixed costs of the seminar?c) Based on past events, you expect that 100 people will attend the seminar What priceshould you charge each attendee so that the seminar breaks even?(Hint: to break even,price must equal the average total cost It is different from the shut-down decisionwhere price need to be at least as high as average variable cost)d) To encourage more young people to get involved, your supervisor suggests chargingstudents a discounted rate You decide to have students pay only the marginal costs oftheir attendance What price should you charge students to attend the seminar?
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