Question
As a community service, the local YMCA runs Saturday afternoon movies for children, charging 50 cents admission per child. The fixed costs are $100 per
As a community service, the local YMCA runs Saturday afternoon movies for children, charging 50 cents admission per child. The fixed costs are $100 per Saturday for film rental, set up, and clean up. The YMCA also sells candy, drinks, and popcorn with a variable cost ratio of .50. The average child spends $2.00 on candy, drinks, and popcorn.
For each Saturday, what is the breakeven number of children attendees? How many children must attend if the YMCA wants an EBIT of $200?
Step by Step Solution
3.31 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the breakeven number of children attendees we need to determine the point at which the ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Essentials of Marketing
Authors: William D. Perreault, Joseph P. Cannon
13th edition
78028884, 978-0078028885
