Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9. The ice city blade are a minor league ice hockey franchise, their arena has 5,000 seats, all of which sells for $11 per ticket

9. The ice city blade are a minor league ice hockey franchise, their arena has 5,000 seats, all of which sells for $11 per ticket per game. The team plays 40 home games and expects to average 70 percent attendance at each game. Variable cost related to ticket printing, promotions, and mailings are estimated to be $1 per ticket. Fixed cost including salaries and operating expenses total $1.2 million for the season.

a.what are the expected total sales in dollars and units (ticket)?

b.What would total sales be if the team sold every ticket to every game?

c.What is the teams projected net income and its planned sales level?

d.What is the breakeven point in terms of total tickets sold?

e.How many tickets per game on average does the team need to sell to break even?

f.Compute the teams safety margin in sales dollars and units (tickets)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

7th Edition

0078136725, 9780078136726

More Books

Students also viewed these Accounting questions