The Blue Parrot Theatre has spent $2500.00 to put on a new production. If the theatre has 85 seats, how much will they have to charge per ticket to break even by the fifth night? Assume a full house each night.
$4.90
$7.65
$7.35
$5.88
To break even, the theatre needs to make back the $2500 it spent on the production.
If they have 85 seats and a full house each night, they will sell 85 tickets per night. Therefore, they need to sell 85 tickets for 5 nights to break even.
Total number of tickets sold = 85 seats * 5 nights = 425 tickets
Cost per ticket to break even = Total cost / Total number of tickets sold
Cost per ticket = $2500 / 425 tickets = $5.88
Therefore, they will need to charge $5.88 per ticket to break even by the fifth night.
So, the correct answer is $5.88.