Question

A concert venue wants to project profit from sales of souvenirs at the upcoming weekend concert. Based on past data, 65% of patrons will buy at least one souvenir. The attendance of the event is expected to be 14,600 patrons. If the venue typical earns $20 from the sale of each souvenir and the company donates 30% of its proceeds to local charities, what is its expected amount the company earns as profit?

Answer 1

Answer: Its expected amount earned as profit is $132,860.

Step-by-step explanation:

Since we have given that

Number of patrons = 14600

Percentage of patrons will buy at least one souvenir = 65%

So, Number of patrons will buy at least one souvenir is given by

$0.65\times 14600\\\\=9490$

Amount from the sale of each souvenir = $20

So, total amount would be

$9490\times 20\\\\=\ 189,800$

Percentage of its proceeds donates to local charities = 30%

Remaining percentage of its proceeds donates to local charities = 100% - 30% = 70%

So, it becomes,

$0.7\times 189800\\\\=\ 132,860$

Hence, its expected amount earned as profit is $132,860.