https://file.aiquickdraw.com/mathbot/file/1729450350440oymxrjm5.jpg

This problem seems to focus on calculating the new break-even point in units after the introduction of additional promotional costs. Here's a step-by-step breakdown of how to approach this:

### Information given:
1. **Online promo campaign (fixed cost)**: 7000€
2. **Free Mango Lassi drink (variable cost)**: 1€ per spectator

The break-even point (in units) can be calculated using the formula:

\[
\text{Break-even point} = \frac{\text{Total Fixed Costs}}{\text{Price per Unit} - \text{Variable Cost per Unit}}
\]

#### Explanation:
1. **Total Fixed Costs**: These would include the 7000€ for the online promo campaign, as it is a one-time fixed cost.
2. **Variable Cost per Unit**: In this case, it is the cost of the Mango Lassi drink, which is 1€ per spectator.
3. **Price per Unit**: You would need to know how much revenue is earned per spectator (i.e., the price of a ticket or earnings per unit) to finalize the calculation.

### What needs to be done:
- If you know the price per spectator (ticket price or earnings), subtract the 1€ (Mango Lassi) from it to get the **contribution margin**.
- Divide the total fixed costs (7000€) by the contribution margin to get the new break-even point in units.

Do you know the price per spectator, or should I assume a value for calculation? Let me know!

#### Further Questions:
1. What is the original break-even point without the promo costs?
2. What happens if the price per spectator changes?
3. Can we estimate how many additional spectators would be drawn due to the promo campaign?
4. How does the fixed cost change if the promotional campaign needs adjustments?
5. How does the contribution margin affect overall profitability?

#### Tip:
Always include both fixed and variable costs when recalculating a break-even point after introducing new costs, as they affect the final result differently!

What is the NEW BREAK-EVEN (in UNITS) after including additional promo costs of 7000€ for an online campaign and 1€ per spectator for a free Mango Lassi drink?

Learn how to calculate the new break-even point in units after including a 7000€ online promo campaign and 1€ per spectator for a free Mango Lassi drink. Understand the impact of fixed and variable costs on your business profitability.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation