Draw a cost-volume-graph for the sports franchise

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Question - The Houston Armadillos, a minor- league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each. The franchise owner estimates that the team's annual fixed expenses are $180,000 and the variable expense per ticket sold is $1. (In the following requirements, ignore income taxes).

Required -

1. Draw a cost-volume-graph for the sports franchise. Label the axes, break-even point, profit and loss areas, fixed expenses, variable expenses, total expenses line and total revenue line

2. The stadium is half full for each game, how many games must the team play to break even?

Reference no: EM132785688

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