Question

Starry Point Music is a not-for-profit organization that brings guest artists to the city. Starry just leased a concert hall for next year's performances, lease payments are $1,000 per month for all 12 months of the year. The society has two types of performances: solo artists and small ensembles. The amount that will be charged for tickets for each type of performance is $320 for solo artists and $420 for ensembles. The only variable costs are marketing and hourly wages and those are estimated at $20 per ticket for both types of performances. The society has scheduled twice as many ensemble performances as solo artists. In addition to the lease costs for the concert hall, the only other fixed cost is the salary of he Artistic Director at $98,000per year. How many tickets for each type of performance must be sold (assuming the same sales mix) for the Society to have operating income of $33,000?

Answer 1