(solve only Q.8 using Q.7)

Q.7 local civic arena is negotiating a contract with a touring ice-skating show, Icey Blades. Icey Blades charges a flat fee of $60,000 per night plus 40 percent of the gate receipts. The civic arena plans to charge one price for all seats, $12.50 per ticket. (a) Determine the number of tickets which must be sold each night in order to break even. (b) If the civic arena has a goal of clearing $15000 each night, how many tickets must be sold? (c) What would nightly profit equal if average attendance is 7,500 per night?

Q.8

In the previous exercise, assume that past experience with this show indicates that average attendance should equal 7,500 persons. (a) What ticket price would allow the civic arena to break even? (b) What ticket price would allow them to earn a profit of $15,000