Concordia College is planning a concert. Maximum capacity for the concert venue is 3,000. tickets will be sold for $25 per ticket. The college estimates that costs of producing the concert to be 2,500 plus the cost of the band. Alternative A a fee of $8,000 and $5 per tickets; or Alternative B - $8.00 per ticket sold at what tickets sales level will the two proposal provide the same profite of loss result? 2.What is the breakeven point in terms of tickets sold for Alternative A 3. What is the breakeven point in terms of tickets sold for Alternative B (Use the Equation Method)? 4. If you expect to see 3,000 tickets, which alternative produces the highest profit?

Concordia College is planning a concert. Maximum capacity for the concert venue is 3,000. tickets will be sold for $25 per ticket. The college estimates that costs of producing the concert to be 2,500 plus the cost of the band. Alternative A a fee of $8,000 and $5 per tickets; or Alternative B - $8.00 per ticket sold at what tickets sales level will the two proposal provide the same profite of loss result? 2.What is the breakeven point in terms of tickets sold for Alternative A 3. What is the breakeven point in terms of tickets sold for Alternative B (Use the Equation Method)? 4. If you expect to see 3,000 tickets, which alternative produces the highest profit?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 5CE: Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the...

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Question

Alternative A a fee of $8,000 and $5 per tickets; or

Alternative B - $8.00 per ticket sold

at what tickets sales level will the two proposal provide the same profite of loss result?

2.What is the breakeven point in terms of tickets sold for Alternative A

3. What is the breakeven point in terms of tickets sold for Alternative B (Use the Equation Method)?

4. If you expect to see 3,000 tickets, which alternative produces the highest profit?

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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