Problem:
Montpelier Symphony Orchestra performs concerts at large performing art center in the city. The average concert sells 900 tickets at $60 per ticket. The company runs about 100 concerts per year and each concert requires 95 artists. The company hires these artists on a long-term basis and pays each artist a base salary of $10,000 per year plus $375 per concert. Program printing cost is $2 per guest. Sales commission to the ticket agent includes a base fee of $2000 per concert plus a commission of $3.00 per ticket. Annual rent and other fix costs total $100,000.
Required:
The number of concerts that must be performed each year to break even is?
- 67 shows
- 80 shows
- 88 shows
- 66 shows
- None of the above
Note: Explain all calculation and formulas.