Question

At the local ballpark, the team charges $5 for each ticket and expects to make $1,500 in consessions. The team must pay its players $2,200 and pay all other workers $1,500. Each fan gets a free bat that costs the team $3 per bat. How many tickets must be sold to break even?
A - 275 B - 1100. C - 2600 D - 440​

Answer 1

Answer:

  B - 1100 tickets

Step-by-step explanation:

Fixed costs appear to be ...

  $2,200 +1,500 = $3,700

The amount of cost that is not covered by concession income is ...

  $3,700 -1500 = $2,200 . . . . remaining cost

The contribution margin per ticket is apparently ...

  $5 -3 = $2

So, the number of tickets that must be sold to cover the remaining cost is ...

  $2200/($2/ticket) = 1100 tickets

Answer 2

profit = revenue minus cost.

revenue is 5 dollars a ticket plus 1400 dollars in concessions.

the cost for the players is 2000 dollars and the cost for the other workers is 1600.

each person who buys a tickets gets a free bat that costs 3 dollars each.

let x equal the number of people who buy a ticket.

revenue = 1400 + 5x.

that's the revenue from the concessions plus 5 dollars for each ticket sold.


cost = 3600 + 3x

that's 2000 for the players and 1600 for the workers and 3 dollars for each bat given away.

profit = revenue minus cost.

profit = 1400 + 5x - (3600 + 3x)

simplify to get:

profit = 1400 + 5x - 3600 - 3x.

combine like terms to get:

profit = -2200 + 2x.

to find the break even point, set profit equal to 0.

set p = 0 and the profit equation becomes:

0 = -2200 + 2x.

add 2200 to both sides of this equation to get:

2200 = 2x

divide both sides of this equation by 2 to get:

1100 = x