Question
An new business owner needs to decide if it will be profitable to sell souvenir hats at a two-night country music concert. The hats would
An new business owner needs to decide if it will be profitable to sell souvenir hats at a two-night country music concert. The hats would cost $3 each, and the cost to rent a booth and have exclusive rights will be $5000. The concert has sold out at 12,000 tickets for each night (24,000 total). From previous concert data, it has been determined that approximately 1 in 10 ticket holders will buy a hat. How many hats in total will have to be sold to earn a pretax profit of $1000 per night ($2,000 for the two concerts)?
A. 11,200 hats
B. 2,400 hats
C. 1,400 hats
D. 1,200 hats
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