Brookville PlayHouse Cost Structure

Fixed Overhead Cost = $8,000

Rehearsal Cost = $4,000

Performance Cost = $2,500

Variable Cost = $2/Patron

Current Situation

Orchestra performs 2 Saturdays each month with new program for each performance.

Capacity = 1000 seats

Price = $10/ticket

Attendance = 800 patrons

Alternative to Improve the Situation

1. Student Rush, tickets at $5/patron sold half hour before show on first-come-first-serve-basis; Can sell 200 additional tickets who otherwise would not attend. - calculate incremental revenue and incremental cost.