Use the Information Below to Answer the Following Question(s)

question 166

Multiple Choice

Use the information below to answer the following question(s) .
Big Sports University is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:
1. Foothills Country Club
a. Fixed rental cost of $600
b. plus $15.00 per person for food.
2. Downhill Country Club
a. Fixed rental cost of $1,080
b. It will have to hire a caterer who charges $12.00 per person for food.
Big Sports has budgeted $900 for administrative and marketing expenses. It plans to hire a band, which will cost another $400. Tickets are expected to be $40 per person. Any other items required for the event will be donated by its local business supporters.
-What is the "operating income" assuming 250 people attend and option one is chosen?

• A) $4,400
• B) $4,350
• C) $4,000
• D) $4,750

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market situation.

Price Elasticity

The measure of responsiveness of the quantity demanded or quantity supplied of a good to a change in its price.

Daytona 500

An iconic annual NASCAR Cup Series motor race held in Daytona Beach, Florida, known as "The Great American Race."

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.