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You are thinking of opening a Broadway play, I Love You, You're Mediocre, Now Get Better! It will cost $5 million to develop the
You are thinking of opening a Broadway play, I Love You, You're Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for 100 weeks. It costs $1000 to open the theatre each night. Tickets sell for $50.00, and you earn an average of $1.50 profit per ticket holder from concessions. The theatre holds 800, and you expect 80% of the seats to be full. Hint: here are your inputs that you'll need to fill in. Inputs Development cost Shows per week Number of weeks Nightly theatre cost Unit ticket price Theatre capacity Concession profit per ticket holder Percent seats filled $5,000,000 8 100 $1,000 $50 $1.50 800 80% Ignoring development costs for now, how much profit would be earned if the play ran for just two weeks? Round your answer to the nearest dollar.
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