Question
Jefferson City has invited an orchestra to play in the citys museum. Your job is to calculate the cost of an individual ticket in order
Jefferson City has invited an orchestra to play in the citys museum. Your job is to calculate the cost of an individual ticket in order for the city to break even on sales. The city estimates that their total fixed costs are $300,000. The variable cost is $20 per ticket.
(a) If the city sets the price of the ticket at $75, how many tickets does the city need to sell in order to break even?
(b) If the city sets the price of the tickets at $50, how many tickets does the city need to sell in order to break even?
Use Formula: P = FC + Q x UVC / Q
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
