Leisure Enterprises is in the process of determining the viability of a concert in Nairobi. The following information shows the estimated cost of the concert: 1. Estimated...

      

Leisure Enterprises is in the process of determining the viability of a concert in Nairobi.
The following information shows the estimated cost of the concert

1. Estimated fixed costs are Sh. 600,000
2. Variable costs are Sh. 100 per ticket sold
3. The proposed price for the sale of a ticket is Sh. 200
4. The expected sales are 8,000 tickets

Required:

i) Number of tickets that must be sold to break-even
ii) Number of tickets that be sold to earn a target profit of Sh. 300,000
iii) The profit that would be realized if 8,000 tickets are sold
iv) The selling price to be charged to earn a profit of Sh. 300,000 on sale of 8,000 tickets, fixed
costs of Sh. 600,000 and variable costs of Sh. 100 per ticket.
v) Percentage margin of safety

  

Answers


Martin
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marto answered the question on February 22, 2019 at 06:23


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