Business

Business

A garage band wants to hold a concert. The expected crowd is 3,000. The average
expenditure on concessions is $ IS. Tickets sell for $10 each, and the band’s profit
is 80% of the gate, along with concession sales, minus a fixed cost of $10,000.
Develop a general mathematical model and implement it on a spreadsheet to find
their expected profit.
Use the Markdown Pricing Decisions spreadsheet model and a two-way data table
to find the total revenue if days at full retail vary from 20 to 40 in increments of 5
and the intermediate markdown varies from [5% to 50% in increments of 5%.
For the garage-band model you developed in Problem 4, define and run some rea-
sonable scenarios using the Scenario Manager to evaluate profitability for varia-
tions in the estimates.