Review the table below, then address all sub-questions Income Expenses Fixed income Fixed costs Sponsorship $2000 Lighting
Question:
Review the table below, then address all sub-questions
Income | Expenses | ||
Fixed income | Fixed costs | ||
Sponsorship | $2000 | Lighting rental | $1500 |
Broadcasting rights | $3000 | Big-top tent rental | $3000 |
Variable income | Portable washroom rental | $2000 | |
Adult ticket | $50 each | Stage rental | $1000 |
Sound system rental | $600 | ||
Variable costs | |||
Variable costs per adult ticket sold | $14 per ticket | ||
(a) 2 marks
Determine the breakeven point for this event _____________ adult tickets
(b) 2 marks
Assuming that no sponsorship or broadcasting rights income was forthcoming, what would be the breakeven point for this event? __________ adult tickets
(c) 2 marks
Assuming that 200 adult tickets were sold, based on the income and expenses specified in the table above, calculate the profit this event would generate $__________ profit
(d) (expected response length 50 words) 4 marks
You wish to explore renting a better quality big-top tent, and learn that doing so would cost $7000 instead of $3000. Assuming that 170 adult tickets are sold, would the event still make a profit? Explain your answer.
Expert Answer:
