What ticket price will provide Excellent Promotions with the greatest profil 590. SHORT TERM DECISIONS AN AIP 12. 10 Promoting a Concert annually Exhibit) employees who are responsible for contracting with bands, renting venues for the The Excellent Promotions Company promotes concerts. The company has the time employees (but not including advertising and specific concert payments is $298. advertising the concert. The cost of operating the office including the salary of the town Temporary help is added the day of the concert to assist in security, ticket sales, and a up. These employees are added based on the expected ticket sales of the concert. the day of the concert, the company can estimate ticket sales quite well boved on ticket sales. These employees are paid $10 per hour and work for an of five hours at each concert. The number of employees that must behind include one security employee for each 100 tickets sold, one fickel every 400 tickets sold, and one employee for cleaning up for every 200 de Excellent Promotions Company is considering bringing a jazz band inters concert. The jazz band wants $20,000 to come and perform. The como can rent a local hall that holds 2,400 concert tans for $5,000. The des price concert, there have been no advance ticket sales and there is every indication do disaster. Exhibit 1 shows the number of people the company estimates will come the "Why Apple is still the king of design and innovation, CNBC online, July 16, 2013, http://www.ne.al Further details on the theory of constraints can be found in E.M. Goldratt and L Cox (1992) The sold. 18 200 16 300 14 400 for a ticket to the concert is expected to be $20. A local catering company i 12 450 willing to pay $500 to the promotions company to sell food and drinks at te 10 500 concert. The concert advertising budget is expected to be $2,000. a. How should the salaries of the three full-time employees of the company be held in analyzing the profitability of the concert with the jazz bande b. The success of this concert depends on the number of ticket sales. What is the best even point in terms of ticket sales Ticker Price Attendees 100 $20 c. What is the maximum profit that this concert can generate? d. Suppose that Excellent Promotions decides to promote the concert. On the day dile sales price is reduced NOTES 1 100883593 (accessed February 7, 2015). 2 A process of ongoing in Worth River Post