Question

The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each. The franchise owner estimates that the team's annual fixed expenses are $180,000, and the variable expense per ticket sold is $1. (In the following requirements, ignore income taxes.)

Answer 1

Required

1. What is the break-even point in tickets?

2. How many tickets must be sold to earn a profit of $30,000?

3. How many tickets must be sold to earn a profit of $100,000?

Explanation: