A business is holding a concert to raise money for a charitable cause. The venue costs $6,000 to rent and can host 500 audience members. Staffing for the event, using the company's employees, will cost $3,000 (including all taxes and benefits). The company expects to spend $1,000 to market the event. What is the break-even selling price of the ticket, assuming no unexpected costs arise?

$18
$20
$180
$200

Question

A business is holding a concert to raise money for a charitable cause. The venue costs $6,000 to rent and can host 500 audience members. Staffing for the event, using the company's employees, will cost $3,000 (including all taxes and benefits). The company expects to spend $1,000 to market the event. What is the break-even selling price of the ticket, assuming no unexpected costs arise?

$18
$20
$180
$200

Vocaloid · Answer

Cost of renting the venue + staffing fee + marketing = 6000 + 3000 + 1000 = $10,000 in total costs. 500 people max can attend.

To break even, cost = revenue. To find the cost per ticket, divide total cost / number of people attending.