fixed cost relating to staging a concert are 350,000. variable cost per patron are $5.00. the selling price for a tickets $25.00. The blue Saints band has sold 23,000 tickets so far. How many ticket does the Blue Saints band need to sell to achieve net income of $75,000.
17000
To find out how many tickets the Blue Saints band needs to sell to achieve a net income of $75,000, we need to calculate the total cost and total revenue first.
Total Cost:
Fixed cost = $350,000
Variable cost per patron = $5.00
Number of tickets sold = 23,000
Total variable cost = Variable cost per patron * Number of tickets sold
= $5.00 * 23,000
= $115,000
Total Cost = Fixed cost + Total variable cost
= $350,000 + $115,000
= $465,000
Total Revenue:
Selling price per ticket = $25.00
Number of tickets to be sold to achieve net income = X (Let's calculate this)
Total Revenue = Selling price per ticket * Number of tickets to be sold
= $25.00 * X
= $25X
Now, let's calculate the equation to find the value of X (number of tickets to be sold):
Total Revenue - Total Cost = Net Income
$25X - $465,000 = $75,000
Solving for X:
$25X = $75,000 + $465,000
$25X = $540,000
X = $540,000 / $25
X = 21,600
Therefore, the Blue Saints band would need to sell 21,600 tickets to achieve a net income of $75,000.