Accounting-A production company is planning to sell tickets to a show for $100 each.

| January 30, 2017

Question
A production company is planning to sell tickets to a show for $100 each. It budgets variable costs to be $10 per attendee. Total fixed costs are estimated to be $90,000. The theatre can accommodate up to 900 people because of safety concerns. What should the production company do? Why?

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