Applied Decision methods-Break Even Analysis
Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the univer-sity for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?
Katherine D’Ann, from Problem 1-18, has become concerned that sales may fall, as the team is on a ter-rible losing streak and attendance has fallen off. In fact, Katherine believes that she will sell only 500 programs for the next game. If it was possible to raise the selling price of the program and still sell 500, what would the price have to be for Katherine to break even by selling 500?
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