The management of Bear Events, an event planning and promotions company, must decide between two bermes for the upcoming benefit concert. They have consulted us to assist the company in the decision analysis. Their research department has provided the necessary infonnation to conduct the analysis. You should work in a team with up to 4 members. each bringing their own individual strengths to the group. A technical worksheet is availa-We in MM1, to document your final answers. You should be prepared to show and explain your work. You must use algebra to solve the problems (not graphing calculator features). Simplify completely and round as appropri-ate. Final answers will be submitted in MylVlathlab. You will turn in your work as described in item #12.

Research Provided flw client's research department has provided the following estimates. 

• A demand of 835 concert tickets can be expected at a price of $45 each. A demand of 707 concert tickets can be expected at a price of $69 each. 
• To justify company resources and to ensure the event will benefit the charity, the CEO insists the tickets be sold for no less than $40 each. 
• Venue I has a fixed cost of $8,500 and a marginal cost of $30 for each ticket sold. 
• Venue 2 has a fixed cost of $18,900 and a marginal cost of $13 for each ticket sold. 
• In appreciation of your work. Bear Es ents will collect donations to provide additional support for the fundraiser. Studies estimate that 25% of those who attend will give $5. 15% will give $10. and 2% will give $20.

1. Determine the maximum profit realized if Bear Events uses Venue 2. What is the average cost per ticket when this occurs? 

2.. Overall recommendation for Bear Events: Which venue should they use in order to obtain the most profit? What profit can be expected? How many concert tickets should they expect to sell in order to obtain that profit? At what price should concert tickets be sold to meet this demand? In addition to answering these questions, further analysis may be used to develop a well-supported recommendation. Support all calculations on the work page. 

Answer rating: 100% (QA)

aThe maximum profit realized if Bear Events uses Venue 2 is 13944 The average cost per ticket when t... View the full answer