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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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