Question

a sport franchise has fixed cost of $10 million. if tickets average $100 and the variable...

a sport franchise has fixed cost of $10 million. if tickets average $100 and the variable cost to provide the event is $50, how many tickets will they have to sell in order to break-even? and how many tickets will they have to sell in order to produce a profit of $10 million?

Homework Answers

Answer #1
ans a
Fixed cost 10000000
i sale price per ticket 100
ii Variable cost per ticket 50
iii=i-ii Contribution margin per ticket 50
Break even ticket = 10000000/50 200000 tickets
ans b required profit = 10000000
Number of ticket required to sale to have 10mil profit = 20000000/50
400000 tickets
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