Question
Case F This is the trickiest break-even case to solve because there are two levels of fixed costs depending on whether20,000 spectators is surpassed or
Case F
This is the trickiest break-even case to solve because there are two levels of fixed costs depending on whether20,000 spectators is surpassed or not. It is necessary for this worksheet to have an IF function in cell C32.
The important data you need is:
Fixed Costs will be 200,000 if total spectators is 20,000 or less; but
Fixed Costswill be 300,000 if spectators go over 20,000
Variable Cost per Participant: 3.00
Ticket Price per Participant: 15
As with other cases formulae have been inserted intoa number cells to make your task easier.Enter above data into the appropriate YELLOW cells. Then by trial an error find out what number goes into the BLUE CELL to make the profit closest to zero.This case actually has TWO answers depending on whether20,000 spectators is exceeded.
Income
Total Spectators
Spectator Ticket Price
Total Income
Expenditure
Variable Costs
Total Spectators
Variable Cost per Spectator
Variable Cost
Fixed Costs
Fixed Cost (Level 1) - Spectators 20,000 or less
Fixed Cost (Level 2) - Spectators over 20,000
Fixed Cost
TOTAL
Profit
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