The Parent Teacher Association (PTA) of Meadow High School is planning a fundraising campaign. The PTA is considering hiring Eric Logan, a world-renowned investment counselor, to address the public. Tickets would sell for $24 each. The school has agreed to let the PTA use Harville Auditorium at no cost. Mr. Logan is willing to accept one of two compensation arrangements. He will sign an agreement to receive a fixed fee of $7,500 regardless of the number of tickets sold. Alternatively, he will accept payment of $15 per ticket sold. In communities similar to where Meadow is located, Mr. Logan has drawn an audience of approximately 500 people.

a. Present a statement showing the expected net income assuming 500 people buy tickets.

b-1. Assume the PTA pays Mr. Logan a fixed fee of $7,500. Determine the amount of net income that the PTA will earn if ticket sales are 12 percent higher than expected. Calculate the percentage change in net income.

b-2. Assume the PTA pays Mr. Logan a fixed fee of $7,500. Determine the amount of net income that the PTA will earn if ticket sales are 12 percent lower than expected. Calculate the percentage change in net income.

b-3. Assume the PTA pays Mr. Logan $15 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 12 percent higher than expected. Calculate the percentage change in net income.

b-4. Assume the PTA pays Mr. Logan $15 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 12 percent lower than expected. Calculate the percentage change in net income.