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? incorrect option. Answer explanation has been updated Check answer button removed A. A $9,490

Answer 1

Answer:

$132,860

Step-by-step explanation:

According to the 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 and we are now told to calculate the expected amount the company earns as profit

If 14,600 patrons are expected to make it to the event and 65% of them are expected to purchase at least one souvenir,that is mathematically represented as

65/100 × 14600

= 9490 patrons are expected to make at least one purchase of the souvenir.

And if each souvenir costs $20 and the total amount of souvenirs purchased is 9490 more or less,then total amount of money received for the souvenirs sold is

9490 × 20 = $189,800

If 30% of the money received from the sales is to be donated to the local charities,the amount of money left with them will be

30/100 × 189,800

= $56,940(amount of money donated to the charity)

Their profit will then be

189,800 - 56,940

=$132,860

Answer 2

Answer:

$132,860

Step-by-step explanation:

The attendance of the event is expected to be 14,600 patrons.

Based on past data, 65% of patrons will buy at least one souvenir.

Therefore at least:

0.65 X 14600 =9490 patrons will buy at least one souvenir.

Each Sourvenir costs $20

Total Least Expected Income = 9490 X $20 =$189,800

Since the company donates 30% to local charities,

Expected Profit= $189,800 - (30% of $189,800)

= $189,800-56940

=$132,860