None One outdoor show for the Rolling Stones' tour should bring 70,000 individuals and the ticket salesof $2.45 million. Fixed costs is $1.2 million for one outdoor show. In addition, 20% of ticket salesgoes to the stadium in which the performance is staged that is considered as variable costs. Addanother $400,000 fixed costs for other expenses such as ticket takers, parking attendants,advertising, and so on. The promoter also shares in sales of T-shirts and memorabilia for which thepromoter will net over $7 million during the tour. From a successful Rolling Stones' tour, thepromoter will net $35 million.If the promoter of the Rolling Stone concerts includes revenue from the sale of T-shirts andmemorabilia into his/her calculations, how much ticket sales revenue is needed to break-even on aconcert? Assume that non-ticket revenue is variable and is projected on the basis of full occupancy.Please make your intermediate calculations up to two decimal points.

Break-Even Point and CVP Analysis is a concept of cost accounting to determine the break-even level…

Answered: One outdoor show for the Rolling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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