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Question # 2 Steel Star Orchestra would like to stage an event. Fixed costs for the event total $5,000. T will sell for $15 per
Question # 2 Steel Star Orchestra would like to stage an event. Fixed costs for the event total $5,000. T will sell for $15 per person, and a promoter responsible for processing ticket orders charges the Orchestra a fee of $2 per ticket. Steel Star Orchestra expects to sell 500 tickets. ickets A) Calculate the following: . How many tickets must Steel Star sell to break even? 2. (3 Marks) How many tickets must Steel Star sell to earn a profit of $7,000? 3. How much must Steel Star have in sales dollars to break even? 4. How much must Steel Star have in sales dollars to earn a profit of $7,000? (3 Marks) (3 Marks) (3 Marks) 5. What is the Orchestra's margin of safety in units and in sales dollars? (3 Marks) B) What is sensitivity analysis and how might it help those performing cos- volume-profit analysis
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