Question: 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

B1. Hampshire Rovers, a regional football team, play their weekly games in a stadium that can hold 10,000 persons. Tickets ar

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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