Break Even Analysis HOMEWORK Rubric and Instructions Students need to use the break-even equation to determine the number of ticket sales needed to breakeven, for your event. There are 3 different scenarios. Each equation will be worth 10- points. Assume the revenue and expenses below are correct. Make the following assumptions about your FIXED COSTS Facility rental event: $200,000 Staffing $100,000 Travel and Shipping expenses $ 50,000 Equipment rental Advertising expense $ 25,000 Insurance $100,000 $ 20,000 Ticketing expenses $ 5,000 TOTAL FIXED COSTS $500,000 VARIABLE COSTS Concession costs $ 30,000 Merchandise costs $ 15,000 Advertising costs $ 25,000 TOTAL VARIABLE COSTS $ 70,000 REVENUE GENERATED (other than ticket sales): Concessions (net profit) Merchandise (net profit) Media rights Advertising fees received TOTAL REVENUE GENERATED (before ticket sales) $ 50,000 $ 25,000 $ 50,000 $ 75,000 $200,000 Based on the information above, conduct a Break-Even Analysis for your event. You will need to calculate: 1) Number of tickets you will need to sell in order to break even. 2) Price of the tickets you will sell. See problems on next page. Name: Equation #1 Assumptions: Score: Breakeven Equations Homework 1) You have a 100% sell-out crowd 2) You have a 10,000 seat facility Calculate your breakeven price per ticket. Show all your work. Equation #2 Assumptions: 1) You have an 80% crowd in ticket sales 2) You have a 10,000 seat facility Calculate your breakeven price per ticket. Show all your work. /30 Equation #3 Assumptions: 1) You have a 90% crowd in ticket sales 2) You have 10,000 seat facility 3) You have an added expense for security, due to last year's event having a bench clearing fight. You must hire 25 officers at $200 each for the event. 4) In addition, the price of travel went up at the last minute, costing you an additional $3,000. Calculate your breakeven price per ticket. Show all your work.