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Steve invests in a circus production. The cost includes an overhead of $84,000, plus production costs of $2000 per performance. A sold-out performance brings in $8000. Determine the number of soldout performances, x, needed to break even.

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Answer:

14

Explanation:

Given that Steve invests in a circus production. The cost includes an overhead of $84,000, plus production costs of $2000 per performance. A sold-out performance brings in $8000.

Sales per performance =8000

Production cost per performance =2000

Contribution per performance =
8000-2000=6000

Overhead costs = 84000

Break even units = overhead cost/contribution per performance

=
(84000)/(6000) \\=14

14 performances should be done to break even

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