Case A
In this simple problem your task is to work out the number of participants required to ensure the event breaks-even.
The data you need to make your calculation is as follows:
Total Fixed Costs: $10,080
Variable Cost per Participant: $2.00
Ticket Price per Participant: $20
Formulae have been inserted into a number cells ready for you to make your task easier. You just need to enter appropriate data into the YELLOW cells. Then by trial an error find out what number goes into the BLUE cell to make the profit closest to zero. That is the number of participants needed to break-even.
As with other cases formulae have been inserted into a number cells to make your task easier. Enter above data into the appropriate YELLOW cells. Then by trial an error find out what number goes into the BLUE CELL to make the profit closest to zero. This case actually has TWO answers depending on whether 20,000 spectators is exceeded.