When planning the new baseball stadium for Washington DC, you are asked to find the break-even point for the number of luxury skyboxes built. The boxes are for sale to corporations and wealthy individuals for $100,000 each. The fixed cost for the entire upper deck is is $1,500,000 with a variable cost of $50,000 each per box. The break-even point is ___________ boxes.
Assume the break-even is x boxes.
The revenue is R = 100000x.
This solution provides a detailed step by step guide to break-even analysis. It shows how to calculate the total cost and the revenue.