The Middlebury town council has invited the circus to come to town. The circus owners are trying to determine how many tickets they will need to sell in order to break even. They estimate their total fixed costs to be $$400,000.$ The variable cost is $$10$ per ticket. If circus management sets the ticket price at $$60,$ how many tickets does the box office have to sell for the circus to break even?

$2.$ Clifftowns Parks and Recreation Department is introducing a new summer day camp for children in elementary school, providing programming from $8$:$00$ a$.$m$.$ to $5$:$00$ p$.$m$.$ Monday through Friday. The proposed day camp program is $10$ weeks long and is planned for $50$ children. Fixed costs include staff, equipment, and facilities costs, and the total fixed cost is estimated at $$15,000$ for the $10$ weeks. The camp will serve lunch and snacks each weekday at a weekly cost of $$15$ per child. How much should the Parks and Recreation Department charge per child for the program to break even?

$3.$ In Clifftown, the parks and recreation director learns that his department has received a grant that can cover $50\%$ of the fixed costs of the new summer day camp. How does this reduction in the total fixed cost change the breakeven price?

$4.$ Clifftown Catering Company $($CCC$)$ has contacted the parks and recreation director about serving meals at the camp. CCC will provide snacks and lunches for all the campers each week for $$8$ per camper per week, in exchange for hanging a CCC banner at the camp and having CCC brochures made available. If the Parks and Recreation Department agrees to this arrangement and takes advantage of the grant mentioned in assignment $3,$ what would the new breakeven price be$?$

$5.$ Unemployment among high school graduates is quite high due to a recession. City Community College is considering a new program to help young people get the training they need to be more employable. The college has collaborated with the municipal hospital to build a nurses aide program, a $1-$year program that would lead to immediate employment. Initial financial analysis indicates that the total fixed cost of the program will be $$200,000,$ which includes the cost of a $1-$year rental of the facilities plus utilities, insurance, and administrative costs. The variable cost and step cost together are $$10,000$ per student, which pays for faculty salary, student lunches, and teaching materials and textbooks. The state kicks in $$5,000$ per student, and the tuition based on market analysis is $$6,000.$ Given that the nurses aide program has never been offered in the region before and will be under financial pressure due to current funding cuts, the colleges board of trustees would like to know how many students would need to be enrolled for the program to break even. The board also wants to know what other options it will have to mitigate these financial issues if the expected enrollment is below the breakeven point, given the high profile of the program at a time when employment and economic recovery are critical.Consider two possibilities:

$\mathrm{<strong>(</strong>}$1) Funding is limited to $100,000, or $$(2) with the benefit of efficiencies, variable and step costs can be reduced to $$9,500.$ You are required to do a financial analysis of the proposed program. Please provide a spreadsheet solution and a written explanation of your approach.

Answer rating: 100% (QA)

Lets tackle each part of the problem step by step 1 Circus Ticket Sales BreakEven Analysis Total fixed costs 400000 Variable cost per ticket 10 Ticket ... View the full answer