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
