Question 1: (80 Marks, 20 each) Internazionale, a league football team, play their weekly games in Meazza stadium just o
Posted: Tue Nov 16, 2021 8:43 am
Question 1: (80 Marks, 20 each) Internazionale, a league
football team, play their weekly games in Meazza stadium just
outside Milano. The stadium can hold up to 80 000 people and
tickets sells for $30 each. The owner estimates that the team’s
fixed expenses per game are $350 000 and the variable expense per
ticket sold is $10. Required:
A. Determine how many tickets must the owner sell to
break-even?
B. Determine how many tickets must the owner sell to earn a
target profit of $450,000?
C. What is the safety margin for the owner if the team plays a
mid-season game and the team owner expects the stadium to be 90%
full?
D. Prepare a fully labeled CVP graph for Internazionale (label
the axes; the break-even point; all the different expenses and the
profit and loss areas
football team, play their weekly games in Meazza stadium just
outside Milano. The stadium can hold up to 80 000 people and
tickets sells for $30 each. The owner estimates that the team’s
fixed expenses per game are $350 000 and the variable expense per
ticket sold is $10. Required:
A. Determine how many tickets must the owner sell to
break-even?
B. Determine how many tickets must the owner sell to earn a
target profit of $450,000?
C. What is the safety margin for the owner if the team plays a
mid-season game and the team owner expects the stadium to be 90%
full?
D. Prepare a fully labeled CVP graph for Internazionale (label
the axes; the break-even point; all the different expenses and the
profit and loss areas