Information:

The EDM club of Dallas is considering having DJ Debit to perform on New Year's Eve. The DJ is paid $250,000 per event, plus travel of $40,000. The club two different types of tickets, VIP (balcony) and regular tickets. The two types of customers differ on their alcohol consumption as well. VIP customers tend to buy more expensive drinks and bottle services. Generally, 20% of ticket sales are VIP tickets. The club capacity is 5,000 (20% VIP).

Alcohol Sales per Unit Selling Price per Unit Variable cost per Unit VIP $150 $50 $ 60 Regular 60 30 20