Answer (D) is correct . The breakeven point in units equals total fixed costs divided by the unit contribution margin. For the large venue, UCM is $12 ($14 selling price – $2 variable cost) and the breakeven point is 416.6 tickets ($5,000 ÷ $12).
Answer (A) is incorrect because Not subtracting the variable cost per person from the revenues per person results in 358 ticket sales.
Answer (B) is incorrect because The amount needed to break even is 417 ticket sales.
Answer (C) is incorrect because The amount needed to break even is 417 ticket sales.
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What is the breakeven point of the large venue?
