My question is only on Part C I have answers to part a and b but put them in there for extra information The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change If the pavilion management agrees to host the concert, the organizers will donate all profits to the non profit (or absorb any losses) Based on the following revenue and cost information, the organizers would like answers to several questions There are three sources of revenue for the concert Tickets will be sold for $16 00 each A large multinational corporation headquartered in Chicago will donate $2 00 per ticket sold Each concert attendee is expected to spend an average of $20 00 for parking, food, and merchandise On the expense side, there are also three components A popular national group has agreed to perform at the concert Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $6 00 per ticket sold The organizers will pay several companies to operate the parking, food, and merchandise concessions They will pay $22,000 plus 13 of all parking, food, and merchandise revenue The organizers will pay the pavilion $80,000 plus $6 00 per ticket sold to cover its operating expenses (production, maintenance, advertising, etc ) REQUIRED Part A (8 tries 8 points) 1 What is the estimated contribution margin per ticket sold for the benefit concert (rounded to two decimal places) 23 4000 correct 2 What are the estimated total fixed costs for the benefit concert 102000 correct Your answers are correct, but just to make sure that there are no rounding issues, use $23 40 for the estimated contribution margin per ticket sold and $102,000 for the estimated monthly fixed costs in Parts B and C Part B (8 tries 8 points) 1 What is the estimated profit from the benefit concert if 11,500 tickets are sold 167100 correct 2 How many tickets must be sold in order for concert profit to be $100,000 8632 correct 3 Assuming a tax rate of 36 on profits from the concert, what must dollar ticket sales be in order for after tax concert profits to be $100,000 176581 correct Part C (4 tries 4 points) 1 Assume that the organizers can negotiate the fixed portion of the pavilion's operating expenses If the organizers expect to sell 11,500 tickets, how much operating fixed costs can they afford to pay and still earn a profit of $100,000 (ignore taxes)

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My question is only on Part C. I have answers to part a and b but put them in there for extra information. The Pritzker

My question is only on Part C. I have answers to part a and b but put them in there for extra information.

The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to the non-profit (or absorb any losses).

Based on the following revenue and cost information, the organizers would like answers to several questions.

There are three sources of revenue for the concert:

Tickets will be sold for $16.00 each.
A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.
Each concert attendee is expected to spend an average of $20.00 for parking, food, and merchandise.

On the expense side, there are also three components:

A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $6.00 per ticket sold.
The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $22,000 plus 13% of all parking, food, and merchandise revenue.
The organizers will pay the pavilion $80,000 plus $6.00 per ticket sold to cover its operating expenses (production, maintenance, advertising, etc.).

REQUIRED Part A (8 tries; 8 points) 1. What is the estimated contribution margin per ticket sold for the benefit concert (rounded to two decimal places)? 23.4000 correct 2. What are the estimated total fixed costs for the benefit concert? 102000 correct

Your answers are correct, but just to make sure that there are no rounding issues, use $23.40 for the estimated contribution margin per ticket sold and $102,000 for the estimated monthly fixed costs in Parts B and C.

Part B (8 tries; 8 points) 1. What is the estimated profit from the benefit concert if 11,500 tickets are sold? 167100 correct 2. How many tickets must be sold in order for concert profit to be $100,000? 8632 correct 3. Assuming a tax rate of 36% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000? 176581 correct

Part C (4 tries; 4 points) 1. Assume that the organizers can negotiate the fixed portion of the pavilion's operating expenses. If the organizers expect to sell 11,500 tickets, how much operating fixed costs can they afford to pay and still earn a profit of $100,000 (ignore taxes)?