Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5
Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
Related questions
Question
Star Symphony would like to perform for a neighbouring city. Fixed costs for the
performance total $5,000. Tickets will sell for $15 per person, and an outside organization
responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star
Symphony expects to sell 500 tickets.
1. How many tickets must Star Symphony sell to break even?
2. How many tickets must the symphony sell to earn a profit of $7,000?
3. How much must Star Symphony have in sales dollars to break even?
4. How much must Star Symphony have in sales dollars to earn a profit of $7,000?
5. What is the symphony’s margin of safety in units and in sales dollars?
Note question 4 and 5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning