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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 Preview

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

    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.