Oz, a non-governmental not-for-profit organization, received $50,000 from Ame Company to sponsor a play given by Oz at the local theater. Oz gave Ame 25 tickets, which generally cost $100 each. Ame received no other benefits. What amount of ticket sales revenue should Oz record?

Question

Jayden Barker

Business

21 March, 03:53

Oz, a non-governmental not-for-profit organization, received $50,000 from Ame Company to sponsor a play given by Oz at the local theater. Oz gave Ame 25 tickets, which generally cost $100 each. Ame received no other benefits. What amount of ticket sales revenue should Oz record?

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Answers (1)

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Malia · Answer 1

47500

Explanation:

Since its a non profit, non government organisation ...

Sponsor cost = total ticket revenue

Tc = price of ticket = 100

Tca = total cost of ticket given to ame

Tca = N * Tc where N is number of ticket given to ame

Tca = 25 * 100 = 2500

Amount of ticket sale revenue by oz = 50000 - 2500 = 47500