Question

Suppose you are the treasurer of the drama club.The cost of scripts for the spring musical is $254. The cost of props and costumes is $400. You must also pay $1.20 per ticket to the play's director. You charge $4.00 per ticket and you also expect to make $150 on refreshments. How many tickets will the drama club need to sell to break even?

Answer 1

Expected net costs are
  $254 +400 -150 = $504

Expected income per ticket is
  $4.00 -1.20 = $2.80

To break even, the number of tickets that must be sold is
  $504/$2.80 = 180

The drama club needs to sell 180 tickets to break even.