John has been asked to determine whether the $22.50 cost of tickets for the community dinner theatre 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:

1	2	3	4	5	6	7	8	9
	Selling Price (P)	Variable Cost (V)	Percent Variable Cost (V/P)	Contribution 1- (V/P)	Sales Units	Dollar Sales (Sales x P)	Percent of sales	Contribution Weighted By Percent Sales (Col 5 x Col 8)
Tickets	$22.50	$10.50	0.467	0.533	175	$3938	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
Total					450	$5313	1.000	0.558

2\ 3 4 5 6 7 8 9

2. Repeat the above question with a 250-seat capacity.