You are

planning a tourism youth summit in Durban. The venue costs R10,000; the

catering costs R5,000; the tickets are R500 per person; the venue hire is

R10,000; the guest speaker fee is R5,000; the conference packs (per person) are

R50; and marketing (posters and social media advertisements) costs R2,000.

2.1.1 Identify

two fixed costs and two variable costs from

the youth summit budget above. (2 + 2 = 4)

2.1.2 How

many people must attend to break even? Show your calculation. (1 x 4 = 4)

2.1.3 Explain

why break-even analysis is important. (2)