EXERCISE 6-17 (30 MINUTES)

3. The answer to this question will vary from school to school, but a clear

distinction should be drawn between the costs that are variable with re-

spect to the number of tickets sold (i.e., actual attendees) versus the

costs that are variable with respect to the number of tickets that are ex-

pected to be sold. The costs that are variable with respect to the num-

ber of tickets actually sold, given the number of expected tickets sold,

are probably inconsequential since, as discussed above, staffing is

largely decided based on expectations.