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doi:10.1016/j.bbabio.2010.03.006

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The symphony must sell 385 tickets to break even: (Total fixed costs + Target profit) / (Selling price per unit Variable cost per unit)=($5,000+$0) / ($15$2)=385 tickets (rounded) The symphony must sell 923 tickets to make a profit of $7,000: (Total fixed costs + Target profit) / (Selling price per unit Variable cost per unit)= ($5,000+$7,000) / ($15$2) = 923 tickets (rounded) The symphony must make $5,769 in sales to break even: (Total fixed costs + Target profit) / Contribution margin ratio=($5,000+$0) / (($15$2) $15) = $5,769 (rounded) The symphony must make $13,846 in sales to earn a profit of $7,000: (Total fixed costs + Target profit) / Contribution margin ratio= ($5,000+$7,000) / (($15$2) $15)=$13,846 (rounded) The symphonys margin of safety is 115 units or $1,725 in sales: Margin of safety=Projected sales Break-even sales 115 tickets=500 tickets385 tickets $1,725 in sales=(500$15)(385$15) 3.2 Cost-Volume-Profit Analysis for Multiple-Product and Service Companies Learning Objectives Perform cost-volume-profit analysis for multiple-product and service companies