The ALLTEL Pavilion Case - Additional Guidance.pptx - The...

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The ALLTEL Pavilion Case Additional Financial Instructions
Q2a: How many tickets must the ALLTEL Pavilion sell to break-even?
Which two types are relevant to the analysis? What type of revenue does each customer contribute?
Q2a: How many tickets must the ALLTEL Pavilion sell to break-even? Cost Behavior Mixed costs Variable costs Fixed costs Guarantee/Talent Costs
Q2a: How many tickets must the ALLTEL Pavilion sell to break-even?
What percent tickets are comp’ed?
Q2a: How many tickets must the ALLTEL Pavilion sell to break-even?
Q2b: How many tickets must ALLTEL sell to earn $30,000 operating income after tax, assuming a 40% tax rate? Calculate revenue required before taxes After-tax revenue / (1 – tax rate)
Q2b: How many tickets must ALLTEL sell to earn $30,000

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