Question

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

Answer 1

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.