The Blue Saints Band is holding a concert in Toronto.Fixed costs relating to staging a concert are $350,000.Variable costs per patron are $10.00.The selling price for a tickets $30.00.The Blue Saints Band has sold 23,000 tickets so far.
How many tickets does the Blue Saints Band need to sell to break even?

Question

The Blue Saints Band is holding a concert in Toronto.Fixed costs relating to staging a concert are $350,000.Variable costs per patron are $10.00.The selling price for a tickets $30.00.The Blue Saints Band has sold 23,000 tickets so far. ​
How many tickets does the Blue Saints Band need to sell to break even?

Quizplus · Accepted Answer

To break even, the revenue earned must be equal to the total cost.

Total Cost = Fixed Cost + Variable Cost

Fixed Cost = $350,000

Variable Cost per patron = $10.00

Selling Price per ticket = $30.00

Let x be the number of tickets the Blue Saints Band needs to sell to break even.

Total Revenue = Selling Price x Number of Tickets = $30x

Total Cost = Fixed Cost + Variable Cost = $350,000 + $10x

Equating the two, we get:

$30x = $350,000 + $10x

$20x = $350,000

x = 17,500

Therefore, the Blue Saints Band needs to sell 17,500 tickets to break even.

The Blue Saints Band Is Holding a Concert in Toronto