Comp customers will only spend on parking concessions

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Comp customers will only spend on parking, concessions, and merchandise. Variable costs = 10% * applicable revenue Fixed cost = Other Direct cost – variable costs Tickets of paying : Comp tickets = 4:1 ii. Calculation: Ticket selling price per unit (p) $40.08 Less: Variable cost, per capita (v) 3.05 Contribution margin per unit (p-v)) $37.03
Comp ticket selling price per unit (p) $13.09 Less: Variable cost, per capita (v) 3.05 Contribution margin per unit (p-v)) $10.04 Breakeven in Units, Q Operating profits = Sales – Total variable costs – Fixed costs Q* $37.03 + Q*(10.04) * 0.25 – $263,245 = 0 Find Q = 6,658 for Paying tickets Another Q is 6,658/4 = 1665 for Comp Tickets. Therefore, they must sell 6,658 paying tickets and 1665 comp tickets. III. For which type of performer (fixed fee or per capital) is breakeven analysis particularly important, and why? And which type of performer is preferred by the Pavilion, and why?

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