Black & White,a Jazz club,is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to break even on the Jazz Fest,a program conducted by it.Fixed costs are $4,000,and the variable cost per person is $10.To break even,Black & White must sell _____ tickets.
A)800
B)500
C)400
D)80

Question

Quizplus · Accepted Answer

To break even, the total revenue must equal the total costs. The break-even point in units can be calculated using the formula: Break-even point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given values: $4,000 / ($20 - $10) = $4,000 / $10 = 400 tickets.

Black & White,a Jazz Club,is Conducting a Breakeven Analysis to Determine