Answer (B) is correct . The breakeven point in units equals total fixed costs divided by the unit contribution margin. For the small venue, UCM is $8 ($10 selling price – $2 unit variable cost) and the breakeven point is 250 tickets ($2,000 ÷ $8).
Answer (A) is incorrect because Not subtracting the variable cost per person from the revenues per person results in 200 ticket sales.
Answer (C) is incorrect because The amount needed to break even is 250 ticket sales.
Answer (D) is incorrect because The amount needed to break even is 250 ticket sales.
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What is the breakeven point of the small venue?
