John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The cost for each performance of a 10-performance run is $2,500. The facility rental cost for the entire 10 performances is $10,000. Drinks and parking are extra charges and have their own price and variable costs, as shown below:

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2 3 5 7 8 PERCENT VARIABLE ESTIMATED QUANTITY OF DOLLAR PERCENT SELLING VARIABLE COST CONTRIBUTION SALES UNITS SALES OF CONTRIBUTION WEIGHTED BY PERCENT SALES PRICE (P) COST (V) (V/P) 1- (V/P) (SALES) (SALES x P) SALES (COL.5 x COL. 8) Tickets with dinner $22.50 $10.50 0.467 0.533 175 $3,938 0.741 0.395 Drinks $5.00 $ 1.75 0.350 0.650 175 $ 875 0.165 0.107 Parking $ 5.00 $ 2.00 0.400 0.600 100 $ 500 0.094 0.056 450 $5,313 1.000 0.558