The Buffalo Philharmonic Orchestra is planning to present performances on two consecutive nights in January.It will cost them $5,000 per night for the musicians, theatre rental and event insurance.The theatre will also take 10% of gross ticket sales.How many tickets must they sell at $10.00 per ticket to break even?
A)1000 tickets
B)1,112 tickets
C)1,223 tickets
D)There is not enough information

Question

Quizplus · Accepted Answer

Total cost for two nights = $5,000 * 2 = $10,000
Theatre would take 10% of gross ticket sales for two nights = 10% * 2 * ($10.00 * x) where x is the number of tickets sold
Net earnings required to break even = $10,000 + 10% * 2 * ($10.00 * x) = $10,000 + $2.00x
To break even, net earnings must equal gross earnings which is ticket price multiplied by the number of tickets sold. Therefore, we can set up the following equation:
$10.00x = $10,000 + $2.00x
$8.00x = $10,000
x = $10,000/$8.00
x = 1,250
However, this is the gross sales required and we need to subtract the theatre's 10%. Therefore, the net ticket sales required is:
1,250 * 90% = 1,112 tickets. 
Therefore, the answer is B) 1,112 tickets.

The Buffalo Philharmonic Orchestra Is Planning to Present Performances on Two