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Theater Profit Analysis Solutions

The document presents four solutions for a theater's show costs, ticket prices, and expected number of spectators, with Solution 2 being the most profitable at a total cost of $3,900 and a ticket price of $15. It also highlights the break-even point, requiring 260 spectators to cover costs. Additionally, it includes a profit graph and details on ticket income, T-shirt sales, and taxes for each solution.

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SooHan Moon
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7 views2 pages

Theater Profit Analysis Solutions

The document presents four solutions for a theater's show costs, ticket prices, and expected number of spectators, with Solution 2 being the most profitable at a total cost of $3,900 and a ticket price of $15. It also highlights the break-even point, requiring 260 spectators to cover costs. Additionally, it includes a profit graph and details on ticket income, T-shirt sales, and taxes for each solution.

Uploaded by

SooHan Moon
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Mini Case

I make a spreadsheet base on the information from text. After analyzing, I found 4 different solution.
Theater Show Cost Rent Total Cost Ticket Price N of Spectators
Solution 1 The Centaur $2,000 $1,000 $3,825 $10 550
Solution 2 The Centaur $2,000 $1,000 $3,900 $15 400
Solution 3 The Centaur $2,000 $1,000 $3,750 $20 250

The pegasus only can accept 250 spectators because of capacity, so we only can choose $20 per ticket.
Theater Show Cost Rent Total Cost Ticket Price N of Spectators
Solution 4 The Pegasus $2,000 $700 $3,450 $20 250

Profi t Graph

$2,050

$1,750

$2,700

$2,225

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

Break-Even Point
The most profitable opition is soulution 2, In this situation, the total cost is $3900. The ticket price is $15. Break-evnen mea
Total Cost Total Income Ticket Price The Number of Spectators Required
$3,900 $3,900 $15 260
ifferent solution.
Ticket Income T-shirt Sale Tax Total Income Profit
$5,500 $550 $825 $6,050 $2,225
$6,000 $600 $900 $6,600 $2,700
$5,000 $500 $750 $5,500 $1,750

nly can choose $20 per ticket.


Ticket Income T-shirt Sale Tax Total Income Profit
$5,000 $500 $750 $5,500 $2,050

$2,700

$3,000

he ticket price is $15. Break-evnen means total cost equal to the total income.

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