Question
Steel car orchestra would like stage an event. Fixed costs for the event total $5,000. Tickets will sell for $15 per person, and the promoter
Steel car orchestra would like stage an event. Fixed costs for the event total $5,000. Tickets will sell for $15 per person, and the promoter responsible for processing ticket orders charges the orchestra a fee of $2 per ticket. Steel star orchestra expects to sell 500 tickets a) Calculate the fillowing :
1. How many tickets must steal star sell to breakeven
2. How many tickets must steel star sell to earn a profit of $7,000?
3. How much tickets must steel star have in sales dollar to break even?
4. How much must steel star have in sales dollar to earn a profit of $7,000?
5. What is the orchestra margin of safety in units and sales dollar?
b) What is sensitivity analysis and how might it help those performing cost- volume- profit analysis ?
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