This problem contains three parts. In Part A you are asked to determine the parameters of the profit equation - CM and Fc. You should not move on to Parts and until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A and you should use them in Parts 8 and C. The problem is worth 20 points. Parts A and B are worth eight points each Part is worth four points. There is no partial credit within a part-to get all the points for a part, you must answer all the questions in that part. You get eight tries on each of the first two parts and four tries on the last part. The Pritzker Music Pavillon in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts tive concerts attended by aver half a million patrons a year. A group of local organizers, sed by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non-profit, national network of investors and environmental organizations working with companies and imestors to address sustainability challenges such as global dimate change. If the pavilion management agrees to host the concert, the organisers will donate all profits to the non-profit (or absorb any losses). Based on the following revenue and cost information, the organisers would like answers to several questions There are three sources of revenue for the concert 1. Tickets will be sold for $14.00 h 2. A large multinational corporation Modernered in Chicago will donate $2.50 per ticket sold 3. Each concert attended to expected to wand an average of $20.00 for parking, food, and merchandise On the expense side, there are also the components 1. A popular national group has agreed to perform at the concert, Normally, the group demands auglicant find toe to perform, but to reduce the risk of the organizers, the group has agreed to perform per ticket sold 2. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $20,000 plus 20% of all parking, food, and merchandise revenue, 3. The organizers will pay the pavilion $85,000 US $6.00 per ticket sold to cover its expenses (production, maintenance, advertising, etc.). REQUIRED Part A (8 tries: 8 points) 1. What is the estimated contribution margin per ticket sold for the benefit concert (rounded to two decimal places)? 2. What are the estimated total fixed costs for the benefit concert? Submit Answer Tres / Part B (B tries: 8 points) 1. What is the estimated profit from the bene concert 8,000 tickets are sold? 2. How many tickets must be sold in order for concert erot to be $100,000 Part B (8 tries: 8 points) 1. What is the estimated profit from the benefit concert 1 8,000 tickets are sold? 2. How many tickets must be sold in order for concert profit to be $100,000? 3. Assuming a tax rate of 3 on profits from the concert, what must Gotar ticket sales be in order for after-tax concert profits to be $500,000 Sumt An Tries / Part.c.(4 tries 4 points) 1. Assume that the organizers can negotiate the fixed portion of the pavilioe's gorating. Axenses. If the organizers expect to sell 8,000 ts, how much operating red costs can they afford to pay and still carn a profit of $100.000 (ignore taxes)? Suomt Answer Tries 1/4 This problem contains three parts. In Part A you are asked to determine the parameters of the profit equation - CM and Fc. You should not move on to Parts and until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A and you should use them in Parts 8 and C. The problem is worth 20 points. Parts A and B are worth eight points each Part is worth four points. There is no partial credit within a part-to get all the points for a part, you must answer all the questions in that part. You get eight tries on each of the first two parts and four tries on the last part. The Pritzker Music Pavillon in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts tive concerts attended by aver half a million patrons a year. A group of local organizers, sed by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non-profit, national network of investors and environmental organizations working with companies and imestors to address sustainability challenges such as global dimate change. If the pavilion management agrees to host the concert, the organisers will donate all profits to the non-profit (or absorb any losses). Based on the following revenue and cost information, the organisers would like answers to several questions There are three sources of revenue for the concert 1. Tickets will be sold for $14.00 h 2. A large multinational corporation Modernered in Chicago will donate $2.50 per ticket sold 3. Each concert attended to expected to wand an average of $20.00 for parking, food, and merchandise On the expense side, there are also the components 1. A popular national group has agreed to perform at the concert, Normally, the group demands auglicant find toe to perform, but to reduce the risk of the organizers, the group has agreed to perform per ticket sold 2. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $20,000 plus 20% of all parking, food, and merchandise revenue, 3. The organizers will pay the pavilion $85,000 US $6.00 per ticket sold to cover its expenses (production, maintenance, advertising, etc.). REQUIRED Part A (8 tries: 8 points) 1. What is the estimated contribution margin per ticket sold for the benefit concert (rounded to two decimal places)? 2. What are the estimated total fixed costs for the benefit concert? Submit Answer Tres / Part B (B tries: 8 points) 1. What is the estimated profit from the bene concert 8,000 tickets are sold? 2. How many tickets must be sold in order for concert erot to be $100,000 Part B (8 tries: 8 points) 1. What is the estimated profit from the benefit concert 1 8,000 tickets are sold? 2. How many tickets must be sold in order for concert profit to be $100,000? 3. Assuming a tax rate of 3 on profits from the concert, what must Gotar ticket sales be in order for after-tax concert profits to be $500,000 Sumt An Tries / Part.c.(4 tries 4 points) 1. Assume that the organizers can negotiate the fixed portion of the pavilioe's gorating. Axenses. If the organizers expect to sell 8,000 ts, how much operating red costs can they afford to pay and still carn a profit of $100.000 (ignore taxes)? Suomt Answer Tries 1/4