Question
John has been asked to determine whether the 1922.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and
John has been asked to determine whether the 1922.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The cust for each performance of a 10-performance ran is 2.500. The facility rental cost for the entire 10 performances is 10.000. Drinks and parking are extra charges and have their own price and variable
costs, as shown below.
Selling Price
Variable Cost
P
P
Estimated Quantity of
Sales Unita 175
175
100
Peso
% of
Tickets with
dinner
P22.50
5.00
5.00
P10.50
P175
P2.00
Drinks Parking
a F in the table and salve for the break-even point in peso (BEP) b. What can you say about the results?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the breakeven point BEP in peso P we need to consider the costs and revenues associated with the community dinner theater The BEP is the level of sales at which total revenue equals total ...
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
4th edition
978-0133428469, 013342846X, 133428370, 978-0133428377
