Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5
Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Star Symphony would like to perform for a neighbouring city. Fixed costs for the
performance total $5,000. Tickets will sell for $15 per person, and an outside organization
responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star
Symphony expects to sell 500 tickets.
1. How many tickets must Star Symphony sell to break even?
2. How many tickets must the symphony sell to earn a profit of $7,000?
3. How much must Star Symphony have in sales dollars to break even?
4. How much must Star Symphony have in sales dollars to earn a profit of $7,000?
5. What is the symphony’s margin of safety in units and in sales dollars?
Note question 4 and 5
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