Question 2: the leaning tower of pisa is a famous tourist attraction in italy. adult tourists pay $8 eur per visit, while children only have to pay $5 eur. the maintenance cost each year for the tower is $500,000 eur. if the revenue from the children’s tickets covers up to 40% of the maintenance cost, how many adults need to visit the tower for the board of tourism to break even?

37,500 adults visits to break even

Explanation:

In this case, we don't need to cover the ntire fixed cost with adult visits, as some portion is cover with children visits:

500,000 fixed cost

40% cover by children

500,000 - 40% = 300,000

Then each adult contribution is 8 EUR so we calculate the Break-even point in adul visits:

300,000 / 8 EUR per adult = 37,500 adults visits

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