Question
I own a comedy club and have a show planned for this coming Saturday night. financial information is below: Ticket sales:300 tickets (capacity is 700)
I own a comedy club and have a show planned for this coming Saturday night. financial information is below:
Ticket sales:300 tickets (capacity is 700)
Ticket price: $34 per ticket
Variable costs per ticket: $4
I also have a two drink minimum policy
The average drink price is $10 and the variable cost for each drink is $2.
I am considering adding a well known comedian to the show lineup for Saturday.
If you add the comedian, you are sure that you will "sellout" the show
If not, you will only sell 300 tickets.
The comedian fee is 25100
Based on managerial accounting, should you add the comedian
to Saturday's show? - SHOW A SINGLE DOLLAR AMOUNT
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