You are working for a local south asian group of performers which has just come off a national tour. They want to host a concert locally and make a $23,000 profit including all ancillary revenue. Based on past events, they expect to earn $3,000 ancillary revenue from selling merchandise. Your rent for the venue is $13,250 inclusive of all staffing and other costs and you expect to pay $5,000 for hiring a local publicity firm and advertising. You plan to sell tickets for $45.00. You must include in your ticket price a $1.00 per ticket building improvement fund and $1.50 ticket processing fee for the venue. The venue has a general admission capacity for 1,000 people. HINT. It might be easier to use the formula for Target Profit to answer this question. # of Tickets to reach Target Profit = (Fixed Costs + Target Profit) / (Ticket Price - Variable Costs)

a. What are the Fixed Costs for the event?

b. How many tickets would you need to sell in order to reach your target profit?

c. What would your sell-through rate be?

d. Based on the above assumptions would you recommend the South Asian performers host this event?