Flash Report for the KFBS Allstars Concert ARTIST NAME The KFBS Allstars ACTIVITY/EVENT NUMBER 10310001 EVENT MONTH 7 EVENT DATE 7/31/04 Projected Sales (Number of Seats) A Seats 2,778 B Seats 2,845 C Seats 1,747 D Seats 881 TOTAL Number of Seats 8,251 Projected Ticket Price A Seats $36.29 B Seats $22.22 C Seats $11.31 D Seats $4.92 PROJECTED NETAFTER TAX ADMISSIONS $182,479 AVG TIX PRICE NET OF TAX PER PAYING PATRON $22.12 TALENT % 88.03% GUARANTEE/TALENT COSTS $160,635 NUMBER OF PERFORMANCES 1 DROP COUNT (includes comp tickets) 10,349 Other Ticket-Related Revenue FACILITY CHARGE $24,010 Per capita $2.91 SERVICE CHARGE $16,172 Per capita $1.96 REVENUE FROM TICKETING $222,673 Per capita $26.99 ANCILLARY REVENUES PARKING $19,767 Per capita $1.91 FOOD CONCESSIONS $79,273 Per capita $7.66 MERCHANDISE $36,428 Per capita $3.52 RENTALS $0.00 REVENUE FROM ANCILLARIES $135,468 Per capita $13.09 TOTAL REVENUE $358,141 Per capita $34.61 EXHIBIT 2 (continued) Other Direct Costs PARKING CONTRACT $4,448 CONCESSION CONTRACT $43,356 MERCHANDISE CONTRACT $17,826 TOTAL DIRECT COSTS $226,265 Per capita $21.86 PERCENT OF SALES 63.2% TOTAL REVENUE (from above) $358,141 TOTAL DIRECT COSTS (from above) $226,265 GROSS PROFIT $131,876 Operating Expenses TOTAL PRODUCTION EXPENSE $15,506 TOTAL OPERATIONS EXPENSE $14,991 TOTAL OTHER VAR EXPENSE $14,323 TOTAL ADVERTISING EXPENSE $20,030 TOTAL OPERATING EXP $64,850 Per capita $6.27 PERCENT OF SALES 18.1% OPERATING INCOME $67,026 Per capita $6.48 PERCENT OF SALES 18.7% Detail: Other Concert Variable Expense Insurance Expense per person $0.17 COGSConcession per person $0.35 COGSMerchandise per person $1.12 COGSParking per person $0.08 Other Variable Concert Expense per person $0.02 TOTAL OTHER VARIABLE EXPENSE $14,323 2. Complete two selected cost-volume-profit analyses for the show illustrated in Exhibit 2, the KFBS Allstars: a) How many tickets must the Greek Pavilion sell to break even? b) How many tickets must the Greek sell to earn $30,000 operating income after taxes, assuming a 40 percent tax rate? 3. What should be the average ticket price for the KFBS concert if the fixed-pay fee is $200,000 and the Greek expects to sell 7,000 tickets and wants to earn $30,000 after 40 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 Greek can pay the KFBS Allstars if the Greek wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12? Assume the show is expected to draw 6,000 paying ticket holders. b) What is the maximum fixed fee that the Greek can pay the KFBS Allstars if the Greek wants to earn $45,000 after 40 percent tax and expects the show to have an average ticket price of $22.12? 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 Greek can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Greek wants to earn $180,000 after 40 percent tax from an average ticket price of $22.12 per ticket