B1. Hampshire Rovers, a regional football team, play their weekly games in a stadium that can...
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B1. Hampshire Rovers, a regional football team, play their weekly games in a stadium that can hold 10,000 persons. Tickets are sold for £10 per fixture. The team manager estimates that the annual fixed costs are £180,000, and the variable expenses per ticket sold are £4. Required: (i) If the sports ground is half-full for each game, how many games must the team play to break even? (ii) If the team plays a 12-game season and the sports ground will only be half full for each game, what ticket price would the team have to charge in order to break even? (ii) Discuss the main limitations of break-even point analysis. [20 marks] B1. Hampshire Rovers, a regional football team, play their weekly games in a stadium that can hold 10,000 persons. Tickets are sold for £10 per fixture. The team manager estimates that the annual fixed costs are £180,000, and the variable expenses per ticket sold are £4. Required: (i) If the sports ground is half-full for each game, how many games must the team play to break even? (ii) If the team plays a 12-game season and the sports ground will only be half full for each game, what ticket price would the team have to charge in order to break even? (ii) Discuss the main limitations of break-even point analysis. [20 marks]
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Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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