Blue,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,Blue must sell _____ tickets.
A)800
B)500
C)400
D)80

Question

Quizplus · Accepted Answer

To break even, the total revenue must equal to the total cost. 
Let x be the number of tickets sold. 
Total revenue = $20x 
Total cost = fixed cost + variable cost 
Total cost = $4,000 + $10x

Setting the two equations equals to each other: 
$20x = $4,000 + $10x

Solving for x: 
$20x - $10x = $4,000 
$10x = $4,000 
x = 400

Therefore, Blue must sell 400 tickets to break even on the Jazz Fest program. The correct answer choice is C) 400.

Blue,a Jazz Club,is Conducting a Breakeven Analysis to Determine How