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You own an outdoor theatre, putting on shows. Financial information for the 2021 early fall season is below. Total fixed costs: $1,600,000 Variable costs
You own an outdoor theatre, putting on shows. Financial information for the 2021 early fall season is below. Total fixed costs: $1,600,000 Variable costs per (admission) ticket sold: $4 Ticket sales: 60,000 tickets Ticket price: $30 per ticket Other revenues: None The following is predicted for the 2022 early fall season: Ticket price (per ticket) will increase by $5 in 2022 Variable cost (per ticket) will decrease by $1.50 (more using the app for tickets) in 2022 Fixed costs will increase by $50,000 for ticket app development and maintenance. A $110,000 increase in advertising will result in a 30% increase in tickets sold
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