The Parent Teacher Association (PTA) of Meadow High School is planning a fund-raising campaign. The PTA...

 

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The Parent Teacher Association (PTA) of Meadow High School is planning a fund-raising campaign. The PTA is considering the possibility of hiring Eric Logan, a world-renowned investment counselor, to address the public. Tickets would sell for $36 each. The school has agreed to let the PTA use Harville Auditorium at no cost. Mr. Logan is willing to accept one of two compensation arrangements. He will sign an agreement to receive a fixed fee of $11,700 regardless of the number of tickets sold. Alternatively, he will accept payment of $26 per ticket sold. In communities similar to that in which Meadow is located, Mr. Logan has drawn an audience of approximately 450 people. b-1. Assume the PTA pays Mr. Logan a fixed fee of $11,700. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent higher than expected. Calculate the percentage change in net income. b-2. Assume that the PTA pays Mr. Logan a fixed fee of $11,700. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent lower than expected. Calculate the percentage change in net income. b-3. Assume that the PTA pays Mr. Logan $26 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent higher than expected. Calculate the percentage change in net income. b-4. Assume that the PTA pays Mr. Logan $26 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent lower than expected. Calculate the percentage change in net income. The Parent Teacher Association (PTA) of Meadow High School is planning a fund-raising campaign. The PTA is considering the possibility of hiring Eric Logan, a world-renowned investment counselor, to address the public. Tickets would sell for $36 each. The school has agreed to let the PTA use Harville Auditorium at no cost. Mr. Logan is willing to accept one of two compensation arrangements. He will sign an agreement to receive a fixed fee of $11,700 regardless of the number of tickets sold. Alternatively, he will accept payment of $26 per ticket sold. In communities similar to that in which Meadow is located, Mr. Logan has drawn an audience of approximately 450 people. b-1. Assume the PTA pays Mr. Logan a fixed fee of $11,700. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent higher than expected. Calculate the percentage change in net income. b-2. Assume that the PTA pays Mr. Logan a fixed fee of $11,700. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent lower than expected. Calculate the percentage change in net income. b-3. Assume that the PTA pays Mr. Logan $26 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent higher than expected. Calculate the percentage change in net income. b-4. Assume that the PTA pays Mr. Logan $26 per ticket sold. Determine the amount of net income that the PTA will earn if ticket sales are 15 percent lower than expected. Calculate the percentage change in net income.

Answer rating: 100% (QA)

In this question there are two agreement types one being fixed 11700 fixed fee and other being varia... View the full answer