2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars (Think of there being two products - Regular Tickets and Comp Tickets): a) How many tickets must the Coastal Credit Union Music Park sell to break even for KFBS? b) How many tickets must Coastal sell to earn $30,000 operating income after taxes, assuming a 20 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $300,000 and the Music Park expects to sell 7,000 tickets and wants to earn $30,000 after 20 percent in taxes? 4. Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts: a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to eam $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume the show is expected to draw 7,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to eam $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $ 180,000 after 20 percent tax from an average ticket price of $33 per ticket? (zero comp tickets can be assumed) 5. Examining the Concessions contract-see exhibit 3 where costs for concessions for all events in 2020 were reported along with the attendance at each of the events. a) Using regression estimate the cost equation for concessions for 2020. b) Compare the results of variable and fixed costs as indicated in your equation with the contract for concessions in Exhibit 2. c) Make a recommendation as to whether Coastal should handle concessions in house (results for 2020) or outsource to the provider in the contract shown in Exhibit 2. 6. Problems with the parking-in 2022 Coastal finds out that its parking lot needs extensive repairs. It can be done in sections so that only one quarter will be unusable at a time but must find a solution for for additional parking for big concerts. They find two possibilities - one is close by so that event goers can walk to the venue easily-this can be rented for $2,000 for each event needed but one month The Pavilion can accommodate 20,000 fans with 7,000 reserved seats directly in front of the stage (covered seating in sections 1 through 9 and VIP scating) and another 13,000 on the spacious lawn. It has 78 theater-style VIP boxes that can accommodate 4, 6, or 8 people. In addition to positioning for prime viewing, patrons in VIP boxes also enjoy amenities such as wait staff service at their seats, personalized parking, and exclusive membership to the VIP Bar & Grill. Directly in front of sections 4, 5, 8, and 9 is seating with an elevated floor that provides excellent views of the stage for patrons with disabilities and additional seating for the hearing or visually impaired. Lawn Seating 2 STAGE Reserved, Covered Seating Exhibit 2 Flash Report for the KFBS Allstars Concert Event Month Event Date 7 07/31/22 Projected Sales A Seats B Seats 2,978 2,945 C Seats D Seats 1,856 881 Total 8,660 Ticket Price A Seats B Seats SS $ 58.00 $ 35.00 C Seats $ 16.00 D Seats $ 10.00 Projected Revenue $ 314,305.00 Average Ticket Price $ 36.29 Guaranteed Talent Cost $ 260,635.00 Attendance (includes Comp) 10,825 Other Ticket Revenue Per ticket facility charge $ Per ticket service charge $ SS 3.50 2.00 Projected Revenue from ticketing Per sold ticket $ 361,935.00 $ 41.79 Ancillary Revenues (per all attendees including comps) Parking Concessions Merchandise Ancillary Contract Terms SSSSA $ 6.00 $ 9.00 $ 4.00 $ 19.00 Parking $ per $ 0.60 Per attendee 17,000.00 event Concession $ per $ 2.70 Per attendee 40,000.00 event Merchandise $ per $ ST 0.80 Per attendee 22,000,00 event Fixed Cost per Event Production Operations Advertising Total $ 24,000 $ 21,600 $ 25,000 $ 70,600 Other Variable Costs including Insurance and supplies $3.00 Exhibit 3 Event Attendance Cost 1 7,240 $ 58,475 2 13,323 $ 79,457 3 17,126 $ 80,898 4 13,268 $ 72,912 5 6,132 $ 54,080 6 15,608 S 75,544 7 17,280 $ 77,808 8 11,883 S 70,153 9 7,878 $ 61,529 10 13,048 S 62,310 11 6,125 S 50,917 Per attendee