Instructions: Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in order to determine possible outcomes and answer the questions. You must answer the follow-up questions (a-e) correctly to receive full credit. Problem As a community service, disc jockeys from radio station WMKT formed a basketball team to help raise money for local nonprofit organizations. The host organization finds or fields a competing team and charges $5 admission to the game. Money from ticket sales goes to the nonprofit organization. Ticket sales were disappointing at recent games, averaging only about 300 people per game. When WMKT's marketing manager, Bruce Miller, heard about the problem, he suggested using sales promotion to improve ticket sales. The PTA for the local high schoo-the sponsor for the next game s interested in the idea but is concerned that its budget doesn't include any promotion money. Miller tries to help them by reviewing his idea in more detail. Specifically, he proposes that the PTA give a free T-shirt (printed with the school name and date of the game) to the first 500 ticket buyers. He thinks the T-shirt giveaway will create a lot of interest. In fact, he says he is almost certain the promotion would help the PTA sell 600 tickets, double the usual number. He speculates that the PTA might even have a sellout of all 900 seats in the school gym. Further, he notes that the T-shirts will more than pay for themselves if the PTA sells 600 tickets A local firm that specializes in sales promotion items agrees to supply the shirts and do the printing for $2.40 a shirt if the PTA places an order for at least 400 shirts. The PTA thinks the idea is interesting but wants to look at it more closely to see what will happen if the promotion doesn't increase ticket sales. To help the PTA evaluate the alternatives, Miller sets up a spreadsheet with the relevant information Spreadsheet The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E and F. Start by entering the initial values into columns B and C. Then review the questions below and adjust the values in columns B and C to determine the correct answers. Initial Initial No promotion With promotion No promotion With promotion 3 Number of Tickets at Regular Price 4Regular Price per Ticket 5 Total Revenue from Ticket Sales 6 Number of T-shirts Ordered 7 Cost per T-shirt 8 Cost of the T-shirt Promotion 9 No. Extra Tickets to Pay for T-shirts 10 Money Earned for the PTA 11 Change in Money Earned from Promotion 300 600 5.00 3,000.00 500 2.40 1,200.00 240 1,800.00 300.00 5.00 S $1,500.00 S $1,500.00 S a. Based on the data from the initial spreadsheet, does the T-shirt promotion look like a good idea? Yes, it should increase money earned No, it will decrease money earned Neutral - the money eaned doesn't change b. The PTA treasurer worries about the up-front cost of printing the T-shirts and wants to know where they would stand if they ordered the T-shirts and still sold only 300 tickets. He suggests it might be safer to order the minimum number of T-shirts (400). How much money would the PTA earn in this scenario? $300.00o $540.00 $960.00 $1,500.00 $2,040.00 c. Miller thinks the PTA is being too conservative and suggests that they could probably charge more for the tickets if they include the T-shirts. If the price was increased to $6.50 and 500 tickets/shirts were sold, how much more would the PTA make versus doing no promotion? $550.00 $790.00 $1,630.50 $2,050.00 $2,290.00 d. The president of the PTA thinks the T-shirt promotion will increase sales but wonders if it wouldn't be better just to lower the price and not bother with the T-shirts. She suggests $2.60 a ticket, which she arrives at by subtracting the $2.40 T-shirt cost from the usual $5.00 ticket price. How many tickets would the PTA have to sell at the lower price to match the money it would make if it used the T-shirt promotion and actually sold 600 tickets? O360 O 600 692 750 900 e. If the promotion were changed such that every person who bought a $5.00 ticket also received a shirt and the game is a sellout (all seats filled), how much money would the PTA ean? $540.80 $840.00 $1,799.20 $2,340.00 $3,300.00