Response to the following problem:
Suppose that Turner Field, the home of the Atlanta Braves, earns total revenue that averages $24 for every ticket sold. Assume that annual fixed expenses are $24 million, and variable expenses are $4 per ticket.
Required:
1. Prepare the ballpark's CVP (cost-volume-profit) graph under these assumptions. Label the axes, sales revenue line, fixed expense line, total expense line, the operating loss area, and the operating income area on the graph.
2. Show the breakeven point in dollars and in tickets.