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The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following arrangements with the band will be in the best interest of the fraternity?

a. $2500 fixed fee
b. $1000 fixed fee plus $5 per person attending
c. $10 per person attending
d. $25 per couple attending Cost of option

Respuesta :

Answer:

b. $1000 fixed fee plus $5 per person attending

Explanation:

The computation is shown below:

I we take the second option than it will came

= 250 tickets × $10 - ($1,000 + $5 × 250 tickets)

= $2,500 - ($1,000 + $1,250)

= $2,500 - $2,250

= $250

So this reflects that the Beta Mu Omega Chi (BMOC) will pay the $2,250 and earned $250 profit

And, the rest options does not specify any kind of profit

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