2. You are working as an event planner for a music studio and during COVID it has been difficult. The year-end show is coming up and the students want to showcase what they have been working on this year by renting a small venue in Toronto to host it. Normally the capacity for the venue is 300 people, but during COVID it is only 150 seats. From the 150 seats, you will have 100 regular seats and 50 VIP seats that are directly next to the stage. The rent for the venue is $800 and includes most staffing costs ($200 non-refundable deposit + $600 invoiced after show). The rent does not include the costs of an Audio Visual professional which is $40 per hour and a minimum four-hour call. The students are not being paid for the performance but the instructors get additional pay for the night totalling $600. To help you market the show, you hire your usual publicist who handles all social media and public relations for $350. Due to COVID, the shows are only 1 hour in length. In pricing the show, you want to price it at $15 per ticket for regular seats and $25 for VIP seats. Based on your planning, you expect a 95% sell-through of VIP seats and a 75% sell-through of regular seats.

a. What is your Average Revenue per Ticket Sold (6)? b. What are the Variable Production Operating Expenses (11)? c. Based on the planned assumptions, what is your Net Revenue? d. You are in the planning stages of your event. If your target profit was $400, would you host this event? (Yes or No) Please explain your answer and the adjustments you would make to the plan in order to meet or exceed your target profit.