Part B please!
The Pritzker Music Pavilion in downtown Chicago s a technologically sophisticated and uniquely designed per orming arts venue that host3 live concerts attended by over half m illion patrons a year, A group of loca organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit Ceres, 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 sgrees to host the concert, the organ zers will donate all profits to Ceres (or aborb any loss) Based on the following revenue and cost information, the organizers would like answers to sveral questions. There are three sources of rewenue for the concert 1. Tickets will be sold for s15.00 each. 2. A large multinational corporation headquartered in Chicago rill donate $2.00 per ticket sold 3. Each concert attendee is expected to spend an average of $19.00 for parking, food, and merchandise. On the expense side, there are also three components 1. A popular national group has agreed to parform at the concert. Normally, the group demands a significant fixed fa to parform, but to reduce the risk for the organiaars, the group has agreed to perform for $6.00 per ticket sold. 2. The organizers wil pay several companies to operate the parking, food, and merchandise concessions' They will pay $20,000 plus 13% of all paring, food, and merchandise revenue. 3. The organizers wil pay the paion90,000 Plus $7.00 per person attending to cover its operating expenses (production, maintenance, advertising, etc.). REQUIRED [ROUND YOUR CM ANSWER TO THE NEAREST CENT ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.] Part AC8tries points) 1. What is the estimated contribution margin per ticket sold for the benefit concert? 2. What ere the estimated total fxed costs for the benefit concert? Submit Ansner Tries d/a Part R (8 tries Rnointa) 3. What is the estimated profit from the benefit concert if 10,500 tickets are sold? 4. How many tickets must be sold in order for concert profit to be $100,000 5, Assuming 8 tax rate of 35% on profits from the concert, what must dollar ticket sales be in order for ofter-tax concert profits to be 100,000? Suomit AeTrias o/s Part C(4 tis 4points) 6. Assu me that the organisers can negotiate the fixed portion of the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much operating fixed costs can they afford to Pay and still earn a profit of 100,000 ignore taxes ? suomAnswer Trie 0/4
