The primary revenue source is ticket sales, although refreshments are also sold during performances. GT has a Board of Directors with three members, Andy, Claire and Ellen. During their last meeting, Ellen presented a summary of current operations (Appendix I) and Andy submitted a proposal to increase ticket sales (Appendix II). Appendix I SUMMARY OF OPERATIONS GT's 800-seat theatre offers, on average, 15 different shows each year, with 10 performances of each show. The average ticket price is $30 and the theatre is, on average, 60% full. GT pays the performers 30% of their performances' gross ticket revenues and performers do not receive any other remuneration from GT. GT currently sells refreshments during performances. About 65% of the patrons spend an average of $8 on refreshments, which cost GT an average of $2. The refreshments are served by two drama students, who are each paid $30 per show. There are no other incremental costs. Appendix II ANDY'S PROPOSAL - ONLINE TICKETING Andy proposes that GT add online ticket purchasing to its current telephone and box office sales. Andy believes that online buyers who are used to the convenience of online shopping will not bother to telephone for tickets or buy

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Analysis of GTs Operations and Andys Proposal Current Operations Revenue Primarily from ticket sales ... View the full answer