1. You are planning a film festival at your university. You rent a venue near campus for $5,000. From the $5,000, $2,500 is paid in advance as a guarantee to hold the date, it is non-refundable. The remainder is paid after the event. You are expecting to sell tickets for $30 each and sell 300 tickets. The tickets are being sold through an online agency that charges $1.50 for every ticket sold as a service charge. The service charges are built into the ticket price. To operate the event you need 10 event/security staff at $25 per hour. You estimate that all the staffing will need 6 hours for the event. The 6 hours includes 1 hour for event load in, 4 hours for the event and 1 hour for load out. Additionally, you will need an AV tech at a cost of $1,200 for the night. To help promote the event and prepare creative materials, you print posters and use social media paid ads for a total cost of $600. You will also need to spend $400 on custom merch for the guests. Both the marketing and merch items need to be paid well in advance of the event.

a. What are your estimated Gross Box Office Receipts (5)?

b. What are your pre-production expenses (9)?

c. What are the fixed production operating expenses (10)?

d. You are in the planning stages of your event. If your target profit was $500, would you host this event? (Yes or No) Please explain your answer and the adjustments you would make to the plan in order to meet or exceed your target profit.