ASSIGNMENT 1 1
Patrice Clarke
1-18
Katherine D’Ann is planning to finance her college education by selling programs at the football
games for State University. There is a fixed cost of $400 for printing these programs, and the
variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell
these programs. If Katherine was able to sell programs for $5 each, how many would she have to
sell in order to break even?
Answer: 1400/5-3 = 1400/2 = 700 programs
Fixed cost is 1,000 fee + 400 for printing = 1400
1-23
Golden Age Retirement Planners specializes in pro- viding financial advice for people planning
for a comfortable retirement. The company offers seminars on the important topic of retirement
planning. For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising
and other incidentals is about $10,000 per seminar. The cost of the materials and special gifts for
