Calculating break even point?

Question

In class we are organizing a concert and i'm in charge of the budget. I calculated my Fixed and Variable cost but I cant figure out the break even point. My Fixed cost is $943,300 and Variable cost is $435,000. We are charging $50 per person. Any input would be very helpful. Thanks :)

Update:

There really is no budget I just had to add everything up and figure the break even point.

Update 2:

We want 100,000 attendees over a 3 day period

tsa · Accepted Answer

The variable cost should be expressed as a variable $ number per attendee ( hence the name).

Assuming for every $1 increase in price, attendance would drop by some percent.

Your break even point is the last ticket where Profit = zero

and where, (fixed costs) / (number of attendees)   + Variable cost per attendee = expected ticket price.

This will allow you to maximize profit, by selling the very last profitable ticket. 

Fixed cost per person = 943,400 / 100,000 = $ 9.434 per person

Variable cost = 435,000 / 100,000 = $ 4.35 per person

Total cost = $ 13.79

Now you must determine what each dollar increase or decrease in ticket price would do to your ticket sales.....( you supply and demand schedule).  Then calculate the break even point.

veeyesvee · Answer

If X is fixed cost and Y is variable cost for 100 people, then total cost is X+Y. Divide this by 100 and and you should charge all particpants that amount to break even.
If you can invite only 50, then Y will be half. Cost per person will increase, as (X+.5Y)/50 is higher.

Anonymous · Answer

How much is the budget?

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Calculating break even point?

3 Answers