Question
Blue, a jazz club is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to breakeven on the Jazz
Blue, a jazz club is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to breakeven on the Jazz Fest, a program conducted by it. Fixed costs are $4,000 and the variable cost per person is $10. Calculate the breakeven point for ticket sales.
a. The selling price per ticket is $ $20
b. The variable cost per each ticket sold is $10
c. The fixed costs for Blue to put on Jazz Fest are $4,000
d. The contribution margin on each ticket sold is $______
e. The number of tickets that Blue must sell to breakeven on Jazz Fest is ______ tickets.
f. What happens if they sell fewer tickets than the number of tickets in e?______________________________________
g. What happens if they sell more than the number of tickets in e?____________________________________________
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