Jefferson City has invited an orchestra to play in the city's museum. Your job is to calculate the cost of an individual ticket in order for the city to break even on sales. The city estimates that their total fixed costs are $300,000. The variable cost is $20 per ticket. (a) If the city sets the price of the ticket at $75, how many tickets does the city need to sell in order to break even? (b) If the city sets the price of the tickets at $50, how many tickets does the city need to sell in order to break even? Use Formula: P = FC + Qx UVC / Q
Jefferson City has invited an orchestra to play in the city's museum. Your job is to calculate the cost of an individual ticket in order for the city to break even on sales. The city estimates that their total fixed costs are $300,000. The variable cost is $20 per ticket. (a) If the city sets the price of the ticket at $75, how many tickets does the city need to sell in order to break even? (b) If the city sets the price of the tickets at $50, how many tickets does the city need to sell in order to break even? Use Formula: P = FC + Qx UVC / Q
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 5TP: You own a construction company and have recently received a contract with the local school district...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College