In: Finance
The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit Ceres, a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).
Based on the following revenue and cost information, the organizers would like you to answer the question.
There are three sources of revenue for the concert:
On the expense side, there are also three components:
REQUIRED [ROUND YOUR CM ANSWER TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.]
Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 8,000 tickets, how much can they afford to pay and still earn a profit of $90,000 (ignore taxes)?