Sam Kerridge is a music teacher and a lover of music. He has recently received an inheritance of 120,000. He has decided to open a caf bar called 'Peyton Place'. He plans to sell drinks and food, and host music events. Sam will book nine music groups each week of different types e.g. jazz, folk, pop, string quartets. One event each week will feature a more well-known group and tickets will be sold. The other events will be free. Sam has found a historic building, at a water-side location, available to rent. He can obtain a licence for alcoholic drinks and entertainment. Sam asks you to help with his business plan. He is uncertain of how many customers will come, and worries about the financial risk. You suggest that he prepares budgets for three levels of activity. Sam feels that Peyton Place will attract a minimum of 700 customers each week, and that an optimistic forecast would be 1,400 customers. He therefore suggests that the middle option should be 1,050. These numbers include the ticketed event. He estimates that each customer will spend 5 on drinks and one half of customers will buy a bar meal costing 8. Sam estimates that average entry price for the ticketed event will be 10 and that he can sell between 70 and 140 tickets for each event, with a middle forecast of 105