The Pavilion can accommodate 20,000 fans with 7,000 reserved seats directly in front of the stage...

   

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The Pavilion can accommodate 20,000 fans with 7,000 reserved seats directly in front of the stage (covered seating in sections 1 through 9 and VIP seating) and another 13,000 on the spacious lawn. It has 78 theater-style VIP boxes that can accommodate 4, 6, or 8 people. In addition to positioning for prime viewing, patrons in VIP boxes also enjoy amenities such as wait staff service at their seats, personalized parking, and exclusive membership to the VIP Bar & Grill. Directly in front of sections 4, 5, 8, and 9 is seating with an elevated floor that provides excellent views of the stage for patrons with disabilities and additional seating for the hearing or visually impaired. Lawn Seating STAGE Reserved, Covered Seating ates) + Exhibit 2 Flash Report for the KFBS Allstars Concert Event Month Event Date Projected Sales A Seats B Seats C Seats D Seats Ticket Price A Seats B Seats C Seats D Seats Total Projected Revenue Average Ticket Price Guaranteed Talent Cost Attendance (includes Comp) Other Ticket Revenue Per ticket facility charge Per ticket service charge 7 07/31/22 $ S $ $ $ S 2,978 2,945 1,856 $ $ 881 8,660 58.00 35.00 16.00 10.00 314,305.00 36.29 $ 260,635.00 10,825 3.50 2.00 S 361,935.00 $ Projected Revenue from ticketing Per sold ticket Ancillary Revenues (per all attendees including comps) 41.79 Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts: a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume the show is expected to draw 7,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.297 Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $ 180,000 after 20 percent tax from an average ticket price of $33 per ticket? (zem comp tickets can be assumed) The Pavilion can accommodate 20,000 fans with 7,000 reserved seats directly in front of the stage (covered seating in sections 1 through 9 and VIP seating) and another 13,000 on the spacious lawn. It has 78 theater-style VIP boxes that can accommodate 4, 6, or 8 people. In addition to positioning for prime viewing, patrons in VIP boxes also enjoy amenities such as wait staff service at their seats, personalized parking, and exclusive membership to the VIP Bar & Grill. Directly in front of sections 4, 5, 8, and 9 is seating with an elevated floor that provides excellent views of the stage for patrons with disabilities and additional seating for the hearing or visually impaired. Lawn Seating STAGE Reserved, Covered Seating ates) + Exhibit 2 Flash Report for the KFBS Allstars Concert Event Month Event Date Projected Sales A Seats B Seats C Seats D Seats Ticket Price A Seats B Seats C Seats D Seats Total Projected Revenue Average Ticket Price Guaranteed Talent Cost Attendance (includes Comp) Other Ticket Revenue Per ticket facility charge Per ticket service charge 7 07/31/22 $ S $ $ $ S 2,978 2,945 1,856 $ $ 881 8,660 58.00 35.00 16.00 10.00 314,305.00 36.29 $ 260,635.00 10,825 3.50 2.00 S 361,935.00 $ Projected Revenue from ticketing Per sold ticket Ancillary Revenues (per all attendees including comps) 41.79 Negotiating the fee for the KFBS Allstars: fixed-pay or per capita contracts: a) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.29? Assume the show is expected to draw 7,000 paying ticket holders. b) What is the maximum fixed fee that the Pavilion can pay the KFBS Allstars if the Pavilion wants to earn $45,000 after 20 percent tax and expects the show to have an average ticket price of $36.297 Assume, including 25 percent comp tickets, the show is expected to be a sell-out. c) Independent of (a) and (b), what is the maximum per capita fee that the Pavilion can pay the KFBS Allstars, whose concert is expected to be a sellout, if the Pavilion wants to earn $ 180,000 after 20 percent tax from an average ticket price of $33 per ticket? (zem comp tickets can be assumed)

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1 The competitive strategy of ALLTEL Pavilion is to create a competitive advantage for itself by offering artlike acoustics and video differentiating ... View the full answer