Problem

The Madison County Museum is planning a fundraising event, featuring a buffet supper and dancing. It is expected that 320 guests would attend, at a ticket price of $70. The venue would charge $1,500 for use of the facility, and advertising costs would be $750. The band would charge $500 plus 10% of gross ticket revenue. The caterer would charge a $300 setup fee, and $35/plate.

a. Determine the net profit or loss of this event for the museum, at an attendance of 320 persons.

b. The caterer has offered the option of a higher-quality meal at a cost of $50/plate (same setup charge). In that case, tickets would be priced at $100. It is expected that attendance would be lower with a higher price. What level of attendance is needed for this option to yield a better outcome than the one in (a)?