A play production costs $40,000 plus $2800 per performance. A sold out play brings in $3675. How many.......

Question

A play production costs $40,000 plus $2800 per performance. A sold out play brings in $3675. How many sold-out performances will the production need to break even?

Steps needed, thanks.

Answer 1

There are two ways I can think to solve this problem.

1. Set up and solve the following equation:
To break even means that the cost = revenue
40,000+2800p = 3675p, where p is the number of sold out performances

2. Since each play costs 2800 and each sold out play brings in $3675 that means that each play brings in $875. So what you could do would be to divide the production cost by the $875 to figure out the number of sold out performances needed.

Hope this helps and makes sense. Good Luck.