Comp ticket selling price per unit (p)
Less: Variable cost, per capita (v)
Contribution margin per unit (p-v))
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?