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Consider a concert where a band is hired for $20,000 plus 15% of the gate receipts. The auditorium is rented for $5,000 plus 5% of

Consider a concert where a band is hired for $20,000 plus 15% of the gate receipts. The auditorium is rented for $5,000 plus 5% of the gate receipts. Security guards costing $80 apiece are hired, one for every 200 people. Advertising, insurance and other fixed costs are $28,000.

Ticket prices are $18 each.

Assuming ticket sales of 6,000, the budget of profit (loss) is:

  • A. None of these are correct
  • B. $17,000
  • C. $21,000
  • D. $35,000
  • E. $31,000

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