One outdoor show for the Rolling Stones' tour should bring 70,000 individuals and the ticket sales of $2.45 million. Fixed costs is $1.2 million for one outdoor show. In addition, 20% of ticket sales goes to the stadium in which the performance is staged that is considered as variable costs. Add another $400,000 fixed costs for other expenses such as ticket takers, parking attendants, advertising, and so on. The promoter also shares in sales of T-shirts and memorabilia for which the promoter will net over $7 million during the tour. From a successful Rolling Stones' tour, the promoter will net $35 million. If the promoter of the Rolling Stone concerts includes revenue from the sale of T-shirts and memorabilia into his/her calculations, how much ticket sales revenue is needed to break-even on a concert? Assume that non-ticket revenue is variable and is projected on the basis of full occupancy.
One outdoor show for the Rolling Stones' tour should bring 70,000 individuals and the ticket sales of $2.45 million. Fixed costs is $1.2 million for one outdoor show. In addition, 20% of ticket sales goes to the stadium in which the performance is staged that is considered as variable costs. Add another $400,000 fixed costs for other expenses such as ticket takers, parking attendants, advertising, and so on. The promoter also shares in sales of T-shirts and memorabilia for which the promoter will net over $7 million during the tour. From a successful Rolling Stones' tour, the promoter will net $35 million. If the promoter of the Rolling Stone concerts includes revenue from the sale of T-shirts and memorabilia into his/her calculations, how much ticket sales revenue is needed to break-even on a concert? Assume that non-ticket revenue is variable and is projected on the basis of full occupancy.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:One outdoor show for the Rolling Stones' tour should bring 70,000 individuals and the ticket sales
of $2.45 million. Fixed costs is $1.2 million for one outdoor show. In addition, 20% of ticket sales
goes to the stadium in which the performance is staged that is considered as variable costs. Add
another $400,000 fixed costs for other expenses such as ticket takers, parking attendants,
advertising, and so on. The promoter also shares in sales of T-shirts and memorabilia for which the
promoter will net over $7 million during the tour. From a successful Rolling Stones' tour, the
promoter will net $35 million.
If the promoter of the Rolling Stone concerts includes revenue from the sale of T-shirts and
memorabilia into his/her calculations, how much ticket sales revenue is needed to break-even on a
concert? Assume that non-ticket revenue is variable and is projected on the basis of full occupancy.
Please make your intermediate calculations up to two decimal points.
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