Question

Each ticket sold by Seattle Conter rary Theater has a unit sales price of $16 minus unit and variable expense of $10 enough to cover fixed expenses of $48,000. You have been hired as Cost accounting expert. Help the Company under following situations a. The Company want to earn the Target Profit of Rs. 3600, What will be the number of

sales units required to earn target profit. b. Suppose Seattle Contemporary Theater sells 8,000 tickets during a play's one-month run, What will be it's Profit.

C. What would happen to Seattle Contemporary Theater's break-even point if fixed expenses change? Suppose the business manager is concerned that the estimate for fixed utilities expenses, $1,400 per month, is too low. What would happen to the break-even point if fixed utilities expenses prove to be $2,600 instead? Suppose the ticket price is raised from $16 to $18. What will be the new break-even point? d. Suppose the ticket price is reduced from $16 to $15. What will be the new break

even point?

(Note- Fixed utility Expenses are part of Total Fixed Expenses i.e. $ 48000)​

Answer 1

Answer:

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Explanation:

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