the next winner of america\'s idol will perform at your fraternity\'s charity ev
ID: 2365349 • Letter: T
Question
the next winner of america's idol will perform at your fraternity's charity event for free at your school's basketball arena (25,000-person capacity) on January 28,2011. The school is charging your fraternity $37,500 for facilities and $10 for each ticket sold. The fraternity ask you, their only numbers-astute member, to determine how much to charge for each ticket. The group wants to make a profit of $8 per ticket sold. you assume that 15,000 tickets will be sold.a. what is the total cost incurred by fraternity if 15,000 tickets sold?
Explanation / Answer
AMount to be paid to School = $37500+$10*15000 = $187,500 ......Ans Fraternity wants $8 profit per tkt. So total Profit reqd = $8*15000 = $120,000 So Total Rev reqd = AMt to be paid to School + Profit = 187500 + 120000 = 307500 As 15000 tkts will be sold to generate 307500 revenue per Tkt SP = Total Rev/No of tkts = 307500/15000 = $20.50 per tkt......Ans
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.