Question 1: (80 Marks, 20 each) Internazionale, a league football team, play their weekly games in Meazza stadium just outside Milano. The stadium can hold up to 80 000 people and tickets sells for $30 each. The owner estimates that the teams fixed expenses per game are $350 000 and the variable expense per ticket sold is $10. Required:

A. Determine how many tickets must the owner sell to break-even?

B. Determine how many tickets must the owner sell to earn a target profit of $450,000?

C. What is the safety margin for the owner if the team plays a mid-season game and the team owner expects the stadium to be 90% full?

D. Prepare a fully labeled CVP graph for Internazionale (label the axes; the break-even point; all the different expenses and the profit and loss areas)