Question: hi I need help with my homework problem. So it is a two part question, I have gotten the first part right, but the second

hi I need help with my homework problem. So it is a two part question, I have gotten the first part right, but the second part incorrect. the first part along with the correct answers are as follows:

--> A local civic arena is negotiating a contract with a touring ice-skating show, Icy Blades.Icy Blades charges a flat fee of $60,000 per night plus 40 percent of ticket revenues.The civic arena plans on charging $12.50 for all tickets.

a)How many tickets must be sold each night for the civic arena to break even?8000tickets

b)If the civic arena has a goal of earning a profit of $15,000 each night, how many tickets must be sold?10000tickets

c)What would nightly profit equal if average attendance is 7500 persons?-3750dollars

THE SECOND PART:

In the previous exercise, assume that past experience indicates that average attendance should equal 7500 persons.

a)What ticket price would enable the arena to break even?$13.4 (incorrect)

b)What ticket price would allow the arena to earn a profit of $15,000?$16.7 (incorrect)

I have submitted these answers four different times now, trying to round them different or what so be it. but your solution on here also states that these should be the right answers. so I am confused. thank you for your help

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!