Respuesta :
Answer:
To break even the local arena must sell approximately 70,589 tickets. They would have a loss of $47625.
Step-by-step explanation:
The cost per night of the Icey blades contract can be expressed as a function of the gate receipts, with the flat cost added by 40% of all the gate receipts sold. This expression is shown below:
[tex]cost(x) = 60000 +0.4*x[/tex]
Since each ticket costs $1.25, then the revenue of the arena can be shown as:
[tex]revenue(x) = 1.25*x[/tex]
In order to break even the revenue must be equal to the cost, so:
[tex]revenue(x) = cost(x)\\1.25*x = 60000 + 0.4*x\\1.25*x - 0.4*x = 60000\\0.85*x = 60000\\x = \frac{60000}{0.85} = 70,588.24[/tex]
To break even the local arena must sell approximately 70,589 tickets.
If the average attendance was 7500 per night, the profit would be:
[tex]profit = revenue(7500) - cost(7500)\\profit = 1.25*7500 - 60000 + 0.4*7500\\profit = 9375 - 60000 + 3000\\profit = -47625[/tex]
They would have a loss of $47625
