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Suppose You Work for a Small City That Possesses a Large

question 3

Multiple Choice

Suppose you work for a small city that possesses a large fairgrounds.There is a weekend several months from now with no planned activity at the fairgrounds.You have asset budget of $5 million and you must choose from among the following events which could be hosted there.Assume for the sake of simplicity that more than one event can take place that weekend so long as you remain within your budget constraint.However, the same event cannot take place twice.
County Fair : Total Costs $5 million - Total Benefits$8 million
Adult Obstacle Course: Total Costs - Total Benefits $1 million $2.5 million
Car Show : Total Costs$2.5 million - Total Benefits $5 million
Dirt Bike Race: Total Costs $4 million - Total Benefits $6.5 million
Music Festival : Total Costs $2 million - Total Benefits $3 million
-Using net benefits formula, which of the events above should be chosen?

Definitions:

Financing

The process of providing or obtaining funds for business activities, making purchases, or investing.

Budgeted Volume

The projected quantity of sales or production specified in a company's budget, used for financial and operational planning.

Ending Inventory

The total value of all unsold goods that a company holds at the end of an accounting period.

Expected Sales

Forecasted revenue from goods or services sold in a future period, often used for budgeting and planning.