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Question - The Houston Armadillos, a minor-league baseball teams, 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-profit 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. If the stadium is half full for each game, how many games must the team play to break even?
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