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The Brisbane Nets, a netball team, play their weekly games at a large stadium in Milton. The stadium holds 6 000 people and tickets sell for $40 each. The team's management estimates that the team's annual fixed costs are $720 000 and that the variable cost per ticket sold is $4. (In the following requirements, ignore income taxes.)
Required:
Question 1: Draw a CVP graph for the sports team. Label the axes, the break-even point, profit and loss areas, fixed costs, variable costs, total cost line and total revenue line.
Question 2: If the stadium is two-thirds full for each game, how many games must the team play to break even?
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