Ginger’s band incurs a fixed monthly cost for a bus, truck, practice studio and support staff. Each show results in revenues and costs as listed below. These costs do no include compensation for the band members.
a. How many performances per month does Ginger need to break even (no compensation for band members)?
b. If each of the band members are paid $40,000 each for each show, what is the break even number of shows per month for the band?
c. The band also earns profits of $1,000,000 from CD sales annually. There are four members in the band. How many performances are needed annually for each to earn $1 million from performances and CD sales?