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Algebra -- produce a rock concert project

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Rock Concert Project: 

Rock Concert Project SAC Industries Sarah Hernandez, Alexandra Hachach, Cindy Cheng

Problem: 

Problem How much should be charged for admission to make the most money? Decisions on band, stadium, and ticket price will have to be made. These will depend on how much money spent. The revenue will come from ticket sales, and they will (hopefully) pay off all costs. If the earnings exceed the costs then a healthy profit is made.

Variables: 

Variables P = Profit R = Revenue C = Cost p = Price per ticket n = number of tickets sold V = Variable costs F = Fixed Costs m= Unit rate for variable costs

Revenue Model: 

Revenue Model Revenue = Price per ticket x Number of tickets sold or, R = pn

Cost Model: 

Cost Model Fixed Costs: Costs that don’t change no matter how many people buy tickets, these costs include: Area renting cost Band booking cost Advertising Ticket Agency Variable Costs: Costs that vary depending on how many tickets are sold, from these costs, we can find a unit rate: $4.50 per concertgoer The equation to find the cost is: C = V + F, or C = mn + F

Cost Model: 

Cost Model Assuming that: The Dixie Chickens are at the Cotton Bowl Knowing that: V = 4.5n

Profit Model: 

Profit Model Profit-The amount of revenue left after all the costs are paid P = R-C For Who’s That? at the Cotton Bowl, P = 20n - 4.5n + 178,000 Break-even point-Where revenue and cost is equal, P = 0 If 20n = 4.5n + 178,000, then n = 11,484

Profit Model: 

Profit Model Assuming that: Who's That? is at the Cotton Bowl, and p = $20 Knowing that: m = 4.5 F = 178000

Sales Demand Model: 

Sales Demand Model Sales Demand- relationship between ticket price and ticket sales For example, if n = -250p + 27740, then the number of tickets sold can be put in a table

Sales Demand Model: 

Sales Demand Model For the Starplex Amphitheater

Sales Demand Model: 

Sales Demand Model For the Cotton Bowl

Who’s That? at Starplex Amphitheater: 

Who’s That? at Starplex Amphitheater Best Ticket Price:$60 Maximum Profit:$558,500

Who’s That? At Cotton Bowl: 

Who’s That? At Cotton Bowl Best Ticket Price:$60 Maximum Profit:$599,000

Ms. Teak at Starplex Amphitheater: 

Ms. Teak at Starplex Amphitheater Best Ticket Price:$60 Maximum Profit:$396,500

Ms. Teak at Cotton Bowl: 

Ms. Teak at Cotton Bowl Best Ticket Price:$60 Maximum Profit:$572,000

Dixie Chickens at Starplex Amphitheater: 

Dixie Chickens at Starplex Amphitheater Best Ticket Price:$60 Maximum Profit:$518,500

Dixie Chickens at Cotton Bowl: 

Dixie Chickens at Cotton Bowl Best Ticket Price: $60 Maximum Profit: $559,000

Final Recommendation: 

Final Recommendation With a maximum profit of $599,000, we highly suggest booking Who’s That? at the Cotton Bowl with a ticket price of $60. This will make the highest profit out of any of the other combinations.

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