# Concordia College is planning a concert.  Maximum capacity for the concert venue is 3,000.  tickets will be sold for \$25 per ticket.  The college estimates that costs of producing the concert to be 2,500 plus the cost of the band.   Alternative A a fee of \$8,000 and \$5 per tickets; or Alternative B - \$8.00 per ticket sold at what tickets sales level will the two proposal provide the same profite of loss result? 2.What is the breakeven point in terms of tickets sold for Alternative A  3. What is the breakeven point in terms of tickets sold for Alternative B (Use the Equation Method)?  4.  If you expect to see 3,000 tickets, which alternative produces the highest profit?

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Concordia College is planning a concert.  Maximum capacity for the concert venue is 3,000.  tickets will be sold for \$25 per ticket.  The college estimates that costs of producing the concert to be 2,500 plus the cost of the band.

Alternative A a fee of \$8,000 and \$5 per tickets; or

Alternative B - \$8.00 per ticket sold

at what tickets sales level will the two proposal provide the same profite of loss result?

2.What is the breakeven point in terms of tickets sold for Alternative A

3. What is the breakeven point in terms of tickets sold for Alternative B (Use the Equation Method)?

4.  If you expect to see 3,000 tickets, which alternative produces the highest profit?

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Step 1

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered

Step 2

The profit on the sale of tickets is Total contribution on the tickets less the fixed costs. We have assumed that the tocket volume is X. So, the Profit as per Alternative A= 20X-10500 & Profit as per alternative B =17X-2500

Step 3

2. Break even point is the level of sales where the sales is just able to cover the fixed costs. Breakeven point is compu...

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