The organization puts on three different fairs each year - one in February, one in June and one in November. The fair runs for 4 weeks. Bill is trying to figure whether he should schedule two or three fairs per week for the June presentation. These are the following cost estimates:
•Cost of printing mailers will be a sixty dollars set up fee plus fifty cents per notice
•Postage for mailing will be thirty cents each.
•Posters cost $50 for each production
•Concessions stands cost $1,215 per month of production
•100-500 programs will be $250; 500 to 1,000 programs will be $400 and 1,000 to 2,000 will be $500.
•Security will be $110 per night plus $30 per hour; five hours will be needed each night.
•Pizza to be served. - One pizza serves 10 people. The cost is $12/pizza. (All attendees receive a slice whether they are members or not.
•The park can hold 150 people per fair. The cost of preparing the fair grounds is $300 per day if the attendance is 120 people or less. It is $350 per night if attendance is more than 120 people. Max is 1,800 for 12 nights
•One of the members owns the fair grounds and rents it for $50 per week plus $2 for each ticket sold.
•Each MEMBER attending receives a free drink which is $2 per person. (Only members receive the complimentary drink tickets.)
The organization has 1,400 members who pay a small membership fee. All members receive a notice of the fair and receive priority in buying tickets. After a specific deadline the tickets are made available to the public. Usually, about 960 of the members attend the summer offering. The fairs are presented from 8 to 11 p.m. (Assume that attendance is spread evenly over the fairs).
The organization is trying to decide what price to charge per ticket. They are non profit so they would like to charge as small of a price as possible while still making a small profit.
What is the break-even point at the following ticket prices: $20 per person, $15 per person and $10 per person? Assume 960 members attend. 3 fairs per week. 12 total presentations.