Ask Question
25 December, 03:35

Scenario 15-6: The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fans and casual fans. For a particular WeR2Loud 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 profit will the concert promoters earn if they set the price of each ticket at $50?

A. $25,000

B. $75,000

C. $100,000

D. $150,000

+3
Answers (1)
  1. 25 December, 03:36
    0
    If they set the price of each ticket at $50, the profit of the promoters will be of $25,000

    Explanation:

    Earnings:

    1,500 seats sold (1,000 die-hard fans + 500 casual fans) x $50 for ticket = $75,000

    Costs: $50,000 (band, lighting, security, etc.)

    Profit: $75,000 - $50,000 = $25,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Scenario 15-6: The concert promoters of a heavy-metal band, WeR2Loud, know that there are two types of concert-goers: die-hard fans and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers