Solve the problem.
-Steve invests in a circus production. The cost includes an overhead of $44,000, plus production costs of $6000 per performance. A sold-out performance brings in $10,000. Determine the dollar amount coming in and going Out at the break-even point.
A)$11
B)$66,000
C)$27,500
D)$110,000

Question

Quizplus · Accepted Answer

At the break-even point, the total income equals the total costs. The fixed overhead is $44,000, and each performance costs $6,000. The income per performance is $10,000. To find the break-even point, set the total cost equal to the total income: $44,000 + $6,000x = $10,000x. Solving for x gives x = 11 performances. The total income and total cost at this point are both $110,000.

Solve the Problem. -Steve Invests in a Circus Production. the Cost Includes an Cost