Steve invests in a circus production. The cost includes an overhead of $84,000, plus production costs of $2000 per performance.
1 answer:
Answer:
14
Step-by-step explanation:
Given that Steve invests in a circus production. The cost includes an overhead of $84,000, plus production costs of $2000 per performance. A sold-out performance brings in $8000.
Sales per performance =8000
Production cost per performance =2000
Contribution per performance =
Overhead costs = 84000
Break even units = overhead cost/contribution per performance
=
14 performances should be done to break even
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