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Suppose that the Ivor Wynne StadiumIvor Wynne Stadium, home of the Hamilton Tiger minus CatsHamilton TigerCats, earns total revenue that averages $25 for every ticket sold. Assume that annual fixed expenses are $23 million and that variable expenses are $5 per ticket. Assume 1,000,000 tickets sold.

Requirements

1.	Prepare the ballpark's CVP graph under these assumptions. Label the sales revenue line, fixed expense line, total expense line. Indicate the operating loss area and operating income area.
2.	Calculate the break-even point in dollars and in tickets.

Requirement 1. Prepare the ballpark's CVP graph under these assumptions.

Draw and label the following lines: sales revenue line, fixed expense line, and the total expense line. (Enlarge the graph to maximum size and use the line tool button displayed to draw the graph.)

1. The operating income area is

a) above the fixed expense line and below the total expense line

b) above the sales revenue line and below the total expense line

c) above the total expense line and below the sales revenue line

2.

The operating loss area is .

a) above the fixed expense line and below the total expense line

b) above the sales revenue line and below the total expense line

c) above the total expense line and below the sales revenue line

Requirement 2. Calculate the break-even point in dollars and in tickets.

The break-even point in dollars is ......................................$ .

The break-even point in tickets is ......................................$ tickets.

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