Please clarify the calculation.

Exhibit 1. Summary of the Contract With Edwards Theater Service Hours per show Fee $2,000 Hall rental per week, including practices and performance One-time ticket set-up fee $20 Technical support and lighting (4-hour minimum) $20 per hour 1.5* Sound techinician (4-hour minimum) $20 per hour 1.5** House management $60 per show Facility fees $2 per ticket Ticket convenience charges $3 per ticket *ET would have to pay a minimum of 4 hours ($120) even if ET does not use 4 hours of technical support and lighting. **ET would have to pay minimum of 4 hours ($120) even if ET does not use 4 hours of sound technician. Exhibit 3. Assumptions for Estimating Ticket Sales and Receipts Estimated number of shows 4 Price per ticket - adult 25 including $5 in fees Price per ticket - student and senior 22 including $5 in fees Estimated percentage of adult ticket 0.7 Estimated percentage of student and senior ticket 0.3 Maximum capacity 90 seats Average occupancy per show 0.5 ***Need clarification on how to calculate the highlighted section*** B C D G H I 1 Budgeted Statement based on Four Shows BUDGET ACTUAL EXPENDITURE Total Variable Costs 2 RECEIPTS BUDGET ACTUAL $900 Black Box Theater, including adults, students and senior $900 $3,438 4 TOTAL ESTIMATED TICKET RECEIPTS Total Contribution Margin 5 6 Cash Donation Step Costs: From Solution to Question 2b 7 In-kind food donation Technical Support & Lighting (4-hour minimum) $480 ($120 x 4 shows) $480 ($120 x 4 shows) 8 Cash and In-Kind Food Donation Total Sound Technician (4 hour minimum) 9 TOTAL BUDGETED RECEIPTS House Management $240 ($60 x 4 shows) 10 Total Step Costs $1,200 10 11 12 Fixed Costs: 13 Hall rental per week, including practices and performance $2,000 14 One time ticket set up fee $20 15 Rental for rehearsal $0 nema 16 Stage Decoration and Transportation of dcor $0 17 Additional light and sound $0 18 Brochures and printing $0 19 Publicity for various ads, interviews, Facebook ads etc. $0 20 Make up $0 21 Food during performance and rehearsals sn $0 22 Copyright Payment $0 23 Other $0 Total Step and Fixed Costs $3,220 ($1200 + 2000+20) 24 25 26 Operating Income before Donations $218 (3438 3220) NET OPERATING INCOME ESTIMATED $218 (3438-3220) $4,338 $4,338 $0 SO $0 $4,338 J K