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2 years ago

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You invest in a new play. The cost includes an overhead of $30,000, plus production costs of $2500 per performance. A sold-out p

erformance brings you $3125. Let x represent the number of sold-out performances. How many sold-out performances must be played in order for you to break even?

1 answer:

Alchen [17]2 years ago

8 0

Answer: 48 sold-out performances must be played in order for you to break even.

Step-by-step explanation:

Let x represent the number of sold-out performances must be played in order for you to break even.

You invest in a new play. The cost includes an overhead of $30,000, plus production costs of $2500 per performance. This means that the total cost of x sold out performances would be

2500x + 30000

A sold-out performance brings you $3125. This means that he total revenue from x sold out performances would be

3125x

To break even, cost = revenue

Therefore,

2500x + 30000 = 3125x

3125x - 2500x = 30000

625x = 30000

x = 30000/625

x = 48

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