The social club is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to break even on the holiday dance. fixed costs are $4,000, and the variable cost per person is $10. to break even, the social club must sell .
a) 800
b) 500
c) 400
d) 80

correct option is C) 400

Explanation:

given data

selling cost  = $20

Fixed costs = $4,000

variable cost = $10

to find out

how many tickets sell

solution

first we get here contribution per unit that is express as

contribution per unit = selling cost - variable cost    .................1

contribution per unit = $20 - $10

contribution per unit = $10

and

so breakeven unit will be here as

breakeven unit =   .............2

breakeven unit =

breakeven unit = 400 ticket

so correct option is C) 400

  Sure, why not

Explanation: