I only need the second part.
Producing a musical costs $88,000 plus $5900 per performance. One sold-out performance earns $7500in revenue. If every performance sells out, how many performances are needed to break even? If variable costs were reduced by 20%, how many performance are needed to breakeven?
Cost= 88,000 + 5900x
Revenue= $7,500
88,000 + 5,900x= 7,500x
88,000= 1,600x
55= x
One sold out performance brings about $7500 in revenue. If the
variable costs have been reduced by 20%, that is, if the variable
of cost $5900 becomes
Hence, for breakeven,
As per the equation, the number of performances are 31.65, but there is no such thing as a partial performance in a musical performace. Hence, 32 performances are needed to break even.
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