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Musya8 [376]
4 years ago
15

Scenario 15-6 The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fa

ns and casual fans. For a particular WaR 2 Loud concert, there are 1,000 die-hard fans who will pay $150 for a ticket and 500 casual fans who will pay $50 for a ticket. There are 1,500 seats available at the concert venue. Suppose the cost of putting on the concert is $50,000, which includes the cost of the band, lighting, security, etc.
Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $50 per ticket?
Business
1 answer:
makvit [3.9K]4 years ago
8 0

Answer:

$25000

Explanation:

The profit can be calculated using he following formula:

Profit = Sales - Expenses

Here

Expenses are $50,000 and

Sales are $50 per ticket with 1500 customers

So the total sales would be $75,000 ($50 per ticket * 1500 customers).

So by putting values in the above equation, we have:

Profit = $75,000 - $50,000 = $25,000

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to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%.
PolarNik [594]

Answer:

11.33%

Explanation:

The dividend valuation model will be used here to calculate the cost of equity raised which can be calculated using the following formula:

r = D1 / (Po - F)           + g

Here D1, Po, F and g are given in the question so by putting the values in the equation, we have

r = $1.75 / ($42.5 - 5% of Po)      +  7%

r = 11.33%

5 0
3 years ago
ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle
sertanlavr [38]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Business Entity Assumption state that businessman and business are a different entity.

Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.

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3 years ago
Consider a $1200 investment for a new plant that is expected to have a Residual Value of $200 in five years. What is the Salvage
deff fn [24]

Answer:

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Explanation:

The computation of the salvage value at the end of year 5 is given below:

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Multiply with the Capital gain 21%

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3 0
3 years ago
During the second and third trimesters, the caloric needs of a pregnant woman increase by _____ kilocalories per day. 100-200 35
siniylev [52]
Assuming that you are perfectly healthy, such that you are in the appropriate age to be pregnant and you have a normal body weight, your calorie intake should increase by 350-450 calories per day. To be sure, you should consult your doctor.
3 0
3 years ago
What is the purpose of a thesis?
Marrrta [24]

Answer:

C. It states what your paper will prove

Explanation:

Sorry if it wrong

8 0
3 years ago
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