1. In this problem, find the TWO break-even points. 
2. This scenario is commonplace in major events such as Football matches. The two break-even points occur because there are two possible levels of fixed expenditure depending on whether the spectator crowd is smaller or greater than 20.000. 
3. If the crowd exceeds 20,000, the stadium manager has to open up the second tier of seating and extra staffing and cleaning will result. The important data is as follows:
4.  All spectators will be charged $15 each for entry to the stadium. 
5. Fixed Costs if the total of spectators is 20,000 or less will be $200,000. 
6. But if spectators are more than 20,000 , fixed costs will immediately rise to $300,000. 
7. Irrespective of the number of spectators, the variable cost per participant: $3.00

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To find the two breakeven points we need to determine the points at which the revenue equals the tot... View the full answer