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Published on February 20, 2008

Author: smsalgebra

Source: authorstream.com

Slide1:  By: Samuel Lee, Arjun Merchant, Sachit Shrivastav Sam Arteste A.K.A Sam the Scam:  Sam Arteste A.K.A Sam the Scam Sam Arteste is preparing for an upcoming concert and wants to decide what the ticket prices should be in order to make a decent profit What We Already Knew:  What We Already Knew Arena capacities Cotton Bowl: 25,704 Starplex Amphitheater: 20,111 Performer prices Who’s That: $48,000 Ms. Teak: $75,000 Dixie Chickens: $88,000 What We Already Knew (Cont’d):  What We Already Knew (Cont’d) Arena prices Cotton Bowl: $75,000 Starplex Amphitheater: $60,000 Other costs Advertising: $30,000 Ticket Agency: $25,000 Variables Used:  Variables Used R = revenue p = price of tickets n = number of tickets V = variable costs F = fixed Costs m = unit rate for variable cost C = total cost P = profit Equations Used:  Equations Used R= pn V= mn C= V+F P= R-C What We Did:  What We Did To help Sam, we decided to make a profit model for each performing group at each location We did this by finding the revenue and the total costs and then placing those solutions into the equation P= R-C to find the profit Tables:  Tables Starplex Amphitheater Cotton Bowl Linear Regression: n= -248.21p+28,571.43 Linear Regression: n= -146.43p+21,428.57 Variable Costs:  Variable Costs Variable Costs were the costs that changed according to the number of ticket sales We calculated the unit rate, which was 4.5, for the equation V= mn Fixed Costs:  Fixed Costs Starplex Amphitheater Who’s That: $163,000 Ms. Teak: $190,000 Dixie Chickens: $203,000 Fixed Costs:  Fixed Costs Cotton Bowl Who’s That: $178,000 Ms. Teak: $205,000 Dixie Chickens: $218,000 Next Step to Solution:  Next Step to Solution After that, we calculated the revenue & cost for each band at each location Then, we subtracted the revenue by the total cost using the equation P= R-C Who’s That at the Cotton Bowl:  Who’s That at the Cotton Bowl (60, $584160.7) Profit Ms. Teak at the Cotton Bowl:  Ms. Teak at the Cotton Bowl (60, $554160.7) Dixie Chickens at the Cotton Bowl:  Dixie Chickens at the Cotton Bowl (60, $541160.7) Who’s That at the Starplex Amphitheater:  Who’s That at the Starplex Amphitheater (80, $570428.6) Ms. Teak at the Starplex Amphitheater:  Ms. Teak at the Starplex Amphitheater (80, $543428.6) Dixie Chickens at the Starplex Amphitheater:  Dixie Chickens at the Starplex Amphitheater (80, $530428.6) Maximum Profit Earned:  Maximum Profit Earned Our Recommendation:  Our Recommendation Who’s That at the Cotton Bowl with $60 per ticket Acknowledgements:  Acknowledgements Thanks for your time and hope we make your concert… THE CONCERT OF THE CENTURY!!!

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