Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5

Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. 1. How many tickets must Star Symphony sell to break even? 2. How many tickets must the symphony sell to earn a profit of $7,000? 3. How much must Star Symphony have in sales dollars to break even? 4. How much must Star Symphony have in sales dollars to earn a profit of $7,000? 5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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