Question

Producing a musical costs $88,000 plus $5900 per performance. One sold-out performance earns $7500 in revenue. If every performance sells out, how many performances are needed to break even?

Answer 1

Answer: 55 performances are needed to break even.

Step-by-step explanation:

Let x represent the number of musical performances that are made.

Producing a musical costs $88,000 plus $5900 per performance. This means that the total cost of x musical performances would be

88000 + 5900x

One sold-out performance earns $7500 in revenue. If every performance sells out, it means that the total revenue would be

7500 × x = 7500x

In order to break even, total cost would be equal to total revenue. Therefore,

7500x = 88000 + 5900x

7500x - 5900x = 88000

1600x = 88000

x = 88000/1600 = 55