Finding a break-even point: How do I set up the equation and solve?
Producing a musical costs $88,000 plus $59,000 per performance. One sold-out performance earns $7500 in revenue. If every performance sells out, how many performances are needed to break even?
math - Steve, Tuesday, January 10, 2012 at 11:44pm
Good luck. You only get 7500 per performance, while each one costs 88,000?
Check for typos and repost.
Now, if you meant 75,000 revenue per performance, then we want where cost = revenue. For n performances, that would be
88000 + 59000n = 75000n
88000 = 16000n
n = 89/16 = 5.56
so, you'd need 6 sellouts to break even.