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Algebra Rock concert project

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Slide2: 

Sam Artestre spends a lot of his time thinking up “get-rich-quick” ideals. Recently Sam decided that his future lies in concert promoting. He came to us to help him successfully get into the business. Sam has three acts that he is thinking of booking: “Who’s That?” “Ms. Teak” “Dixie Chickens” He has also picked two arenas for the concert: Cotton Bowl Starplex Amphitheater Finally he has a report from a consumer group that suggests that ticket prices affect how many people will come to a concert. The bottom line problem for Sam: How much should he charge for admission to the concert in order to make the most money?

Slide3: 

Obj: determining the cost per ticket Assume: ticket price= $20 R= revenue N= number of tickets sold R=20n Data Table:

Slide4: 

Obj: to find the total fixed cost and unit rate. Fixed cost- the cost that stays the same. Variable cost- the cost that changed by the number of tickets sold. Our equation: C= 4.5n+ 190,000

Slide5: 

Obj: To use system of equations and the cost model to find a profit model. Break even point: occurs when the revenue and the costs are the same which was when we sold 12,259 tickets

Slide6: 

Obj: To create a new profit model which includes the sales demand model for the Dixie Chickens @ Starplex. The guidelines was to use n= -250p + 27740. This new data table showed that the higher you pick as a ticket price the less number of ticket sold.

Slide7: 

Data A: $20 per ticket w/ sell out crowd (20,111 people) Data B: $70 per ticket w/ only 12,800 people (20, 20,111) & (70, 12800) Work: Slope=20111-12800/ 70-20= -146.22 Y-12800= -146.22(x – 70) Y= -146.22p + 23035.4 Revenue w/ the sales Demand Model: R=pn n= =146.22p + 23035.4 R=p(-146.22p + 23035.4) or –146.22p2 + 23035.4p Variable Cost w/ the Sales Demand: V=mn, where m= unit rate V=4.5n V=4.5(-146.22p + 103659.3p

Slide8: 

Total Cost w/ the Sales Demand Model: C= V + F C= ( -657.99p + 103659.3) + 203000 C= -657.99p + 306659.3 Profit w/ the Sales Demand Model: P= R -C P= (-146.22p2 + 23035.4p) – (-657.99p + 306659.3) P = -146.22p2 + 23693.39p – 306659.3

Slide9: 

Obj: What prices Sam would charge people for tickets based on surveys and to find the line of best fit. We found out the higher to make the price of the ticket, the less number of people will come. We found that the equation, C=4.5n+203000 fits perfectly for the data in booking Dixie Chickens @ the Starplex Amphitheater. We found that the price per ticket should be around $20.

Slide10: 

Lessons learned: It taught us how to organize an event profitably & what it involves. The mathematical models are ways of understanding systematically different drivers ( mathematically known as variables) Specifically, for this project: Revenue: n= # of tickets sold and ticket price Cost: arena cost, band cost, and security cost These drivers played a major role in setting a ticket price.

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