What’s the problem?:
What’s the problem? Sam was hired to organize a concert, but he doesn’t know where to have it or what band to hire in order to make the largest amount of profit. This is what he asked us to help him with. We have to find the revenue, fixed and variables costs, and so much more in order to create an awesome and profitable concert!!! We can do it!! :)
Variables:
Variables n= number of tickets sold.
R= revenue
P= profit
C= total cost
V= variable cost
M= unit rate
F= fixed cost
Equations:
Equations P= R - C
C= V + F
V= Mn
R= Pn
Revenue:
Revenue Is the total income produced by a given source
Fixed and variable costs:
Fixed and variable costs Variable cost: Fixed cost:
-example 1: -example 2: -example 3:
Ms Teak 75000 Dixie Chickens 88000 Dixie Chickens 88000
Cottonbowl 75000 Starplex 60000 Cotton Bowl 75000
Other 55000 other 55000 Other 55000
total 205000 total 203000 total 218000
BREAK-EVEN POINT:
BREAK-EVEN POINT The break-even point is where money was not is made or lost.
Break-even:
Break-even
Sales Demand:
Sales Demand
Profit:
Profit Dixie Chickens at the Ampitheater