Suppose that the Rogers Centre, home of the Toronto Blue Jays, earns total revenue that averages $24 for every ticket sold. Assume that annual fixed expenses are $24 million and that variable expenses are $4 per ticket.
1. Prepare the ballpark’s CVP graph under these assumptions. Label the axes, sales revenue line, fixed expense line, total expense line, operating loss area, and operating income area on the graph.
2. Show the break-even point in dollars and in tickets.