The Crypto club is considering having DJ Bitcoin to perform on New Years Eve. The DJ is paid $250,000 per event, plus travel of $40,000. The has club two different types of tickets, VIP and regular tickets. The two types of customers differ on their alcohol consumption as well. VIP customers tend to buy more expensive drinks and bottle services. Generally, 20% of ticket sales are VIP tickets. The club capacity is 5,000 (20% VIP).

Alcohol Sales per: VIP - $150, Reg - $60 Unit Selling Price: VIP - $50, Reg - $30 Unit Variable cost: VIP - $60, Reg - $20

The Austin Club also pays $2,000,000 in local property taxes, fees and other fixed expenses related to the property every year.

1. How many tickets does the club need to sell to break even? At this sales volume, how many VIP and how many regular tickets are sold?

2. Last year, the club had DJ Ethereum, which is higher rated than DJ Bitcoin. There were 4,700 attendants (20% VIP). How would you assess the risk that the club is taking? Calculate the margin of error.

3. Last year, the club had DJ Ethereum, which is higher rated than DJ Bitcoin. There were 4,700 attendants (20% VIP). If the club has the same number of attendants for DJ Bitcoin, how much will it profit from the event (tax = 20%)?

4. How many tickets does the need to sell to make $100,000 (tax = 20%)? At this sales volume, how many VIP and how many regular tickets are sold?