Rock Concert: Rock Concert By: Jessica Guico, Ally Owen, David Lindley
Why we are here: Why we are here Sam Arteste is a man who wants throw a concert as one of his latest get rich quick schemes. But he has some problems…he has narrowed down where he will have the concert to two possible locations, he has also narrowed down who to hire for entertainment to three possible choices. We need to help him figure out these two things and more importantly how much to charge per ticket to maximize his profit. So he hired us.
What is the problem asking: What is the problem asking The problem is asking us to find what the greatest potential profit would be out of all of the bands at which location at which ticket price combination.
The information given.: The information given. The information that was given to us is as follows:
Cost of the bands:
Who’s that? (aging rock band): $48,000.00
Ms. Teak (Rap performer): $75,000.00
Dixie Chickens (Country/folk duo): $88,000.00
Arena Costs:
Cotton Bowl: $75,000.00
Starplex amphitheater: $60,000.00
Other costs: (these will be the same every time)
Advertising: $30,000.00
Ticket Agency: 25,000.00
ALL COMBOS WILL BE DIFFERENT COSTS
More information: More information These are the variable costs the total variable cost is $4.50
Estimated Ticket sales: Estimated Ticket sales
Variables and Equations we used: Variables and Equations we used V=Variable costs
R=revenue
P=profit
C=cost
p=price of ticket
n=number of tickets sold
F=fixed cost
m=Unit rate
C=V+F
V=MN
P=R-C
Calculations: Calculations Dixie Chickens at Cotton Bowl
Cotton Bowl = $75,000
Dixie Chickens = $88,000
Other Expenses = $55,000
+____________________
Total Costs =$218,000
4.5n+218,000=C
Dixie Chickens at Starplex
Starplex =$60,000
Dixie Chickens =$88,000
Other Expenses =$55,000
+____________________
Total Costs =$203,000
4.5n+203,000=C
Calculations: Calculations Ms. Teak at Cotton Bowl
Cotton Bowl =$75,000
Ms. Teak =$75,000
Other expenses =$55,000
+___________________
Total Costs =$205,000
4.5n+205,000=C
Ms. Teak at Starplex
Starplex =$60,000
Ms. Teak =$75,000
Other expenses =$55,000
+___________________
Total Costs =$190,000
4.5n+190,000=C
Calculations: Calculations Who’s that at Cotton Bowl
Cotton Bowl =$75,000
Who’s that =$48,000
Other expenses =$55,000
+___________________
Total Costs =$178,000
4.5n+178,000=C
Who’s that at Starplex
Starplex =$60,000
Who’s that =$48,000
Other expenses =$55,000
+___________________
Total Costs =$163,000
4.5n+163,000=C
Dixie Chickens at the Cotton Bowl: Dixie Chickens at the Cotton Bowl This table shows the profit for Dixie Chickens at the Cotton Bowl with the different Tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $559,000
Slide12: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Dixie Chickens at the Cotton Bowl.
Dixie Chickens at the Starplex: Dixie Chickens at the Starplex This table shows the profit for Dixie Chickens at the Starplex with the different tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $519,000
Slide14: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Dixie Chickens at the Starplex.
Ms. Teak at the Cotton Bowl: Ms. Teak at the Cotton Bowl This table shows the profit for Ms. Teak at the Cotton Bowl with the different Tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $572,000
Slide16: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Ms. Teak at the Cotton Bowl.
Ms. Teak at the Starplex: Ms. Teak at the Starplex This table shows the profit for Ms. Teak at the Starplex with the different tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $531,500.
Slide18: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Ms. Teak at the Starplex.
Who’s that at the Cotton Bowl.: Who’s that at the Cotton Bowl. This table shows the profit for Who’s that at the Cotton Bowl with the different Tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $599,000
Slide20: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Who’s that at the Cotton Bowl.
Who’s that at the Starplex.: Who’s that at the Starplex. This table shows the potential profit for Who’s that at the Starplex with the different tickets prices and the amount of tickets sold for each price. For this profit model the ticket price $60 shows the greatest potential profit of $558,500.
Slide22: This graph shows us what the possible profit would be for each of the ticket prices for the combination of Who’s that at the Starplex.
Solution for Sam : Solution for Sam The solution that we found was Who’s that at the Cotton Bowl at a ticket price of $60. We chose this solution because it has the biggest potential profit of $599,000.00 out of all of the possible combinations.