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Information about gubba

Published on February 20, 2008

Author: smsalgebra


Slide1:  By: Hanson Tran, Austin Hamilton, and Subhash Gubba Slide2:  Sam Arteste is trying to get rich, and quick! He has come to us to help him find the maximum profit he can get by promoting a concert. He wants us to find the best band, at the best price, and at the best location to hold it to get the best profit. Slide3:  P=Profit Made p=Price of Tickets n=number of tickets sold V=Variable Costs F=Fixed Costs C=Total Costs R=Revenue Slide4:  In the first task, we created a Revenue model by using an equation, a graph, and a table. Here we use n as the number of tickets sold. Assuming that the tickets cost $20, the revenue would be 20n. (R = Revenue) Equations: R = 20n; N = 25,704; R = $514,080 Slide6:  In this task, we made a model for the cost that he must pay. On the table, there are two types of costs, fixed cost and variable cost. Fixed Cost deals with the cost of the arena, band, and other expenses, and remain permanent. Variable Costs deals with labor groups, and change depending on number of attendees. Slide9:  Unit Rates $1.60 $.40 $2.50 $4.50 Slide10:  Assuming that Who’s That is booked at The Cotton Bowl, here is the Cost Model for it. As the number of tickets sold increases, so does the cost due to the Variable rate. Slide11:  5,000 10,000 15,000 20,000 25,000 $ Slide12:  In this task, we will combine both the revenue and cost model together. You need to know P = R – C (P = Profit; R = Revenue C = Total Cost) Assuming that Sam books “Who’s That” at Cotton Bowl and he charges $20 per ticket, the next table and graph shows the profits that he would earn. Slide15:  In this task, we will explain how revenue and profit change as the ticket price change. First, know how to find revenue and total cost. [R = pn (for any ticket price p), and C = 4.50n + 178,000] Assuming that Sam books “Dixie Chickens” at the Starplex Amphitheater, the next table and graph shows the sale demands that he would earn. Slide33:  Who’s That at Starplex - $569,190; $70p/ticket Who’s That at Cotton B - $581,160; $60p/ticket Ms. Teak at Starplex – $542,190; $70p/ticket Ms. Teak at Cotton B. – $554,160; $60p/ticket Dixie Chicks at Starplex – $524,420; $80p/ticket Dixie Chicks at Cotton B. – $535,160; $60$p/ticket So, we can see that Who’s That at The Cotton Bowl makes the most money. So, we would recommend to Sam A. to book Who’s That, at The Cotton Bowl, at 60 dollars per ticket.

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