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Break even analysis of luxury skyboxes built

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When planning the new baseball stadium for Washington DC, you are asked to find the break-even point for the number of luxury skyboxes built. The boxes are for sale to corporations and wealthy individuals for $100,000 each. The fixed cost for the entire upper deck is is $1,500,000 with a variable cost of $50,000 each per box. The break-even point is ___________ boxes.

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Solution Summary

This solution provides a detailed step by step guide to break-even analysis. It shows how to calculate the total cost and the revenue.

Solution Preview

Assume the break-even is x boxes.
The revenue is R = 100000x.
The ...

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