The fixed operating costs to a team owner of holding a live football match total $80,000.?

Question

The fixed operating costs to a team owner of holding a live football match total $80,000. In addition, there is an average cost to the owner of $6 per spectator who attends the match. If each spectator pays $14 for a ticket, how many spectators must attend for the owner to make a profit of $160,000?
A. 10000 B.20000 C.30000 D.40000 E.50000

Answer 1

$14 per paid ticket MINUS the amount it cost to run the event per ticket of $6 EQUALS $8. Then you have the $160,000 Profit you're looking for which, ADDED to the $80,000 cost already there EQUALS $240,000 total needed to acheive the $160,000 profit. So, $240,000 DIVIDED by $8 equals 30,000 tickets to be sold. Your answer is C. 30,000

Answer 2

Let the no. of spectators to make a profit of $ 160,000 be x.
Total cost =fixed cost +variable cost. Profit=total gate receipts less total cost.
Hence it is given that (figs. in dollars)
14*x (total gate receipts) less {80,000 ( fixed cost) plus 6*x (variable cost)} = 160,000 (profit)
i.e. 14x-80,000-6x=160,000
i.e. 8x=240,000 or x=30,000 spectators

Answer 3

(80,000+160,000)/(14-6) = 240,000/8 = 30,000

Answer 4

30000.................