Question

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. Determine the number of soldout performances, x, needed to break even.

Answer 1

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 = $8000-2000=6000$

Overhead costs = 84000

Break even units = overhead cost/contribution per performance

= $\frac{84000}{6000} \\=14$

14 performances should be done to break even