When a popular playwright opened a new play, he had to decide whether to open the show on Broadway or off Broadway. For example, he decided to open his last play off Broadway. From information provided from his produ the following equations were developed: 43,800x-y = 1,299,000 23,000x-y = 390,000 where x represents the number of weeks that the show ran and y represents the profit or loss from the show. The equation is for Broadway, and the second equation is for off Broadway. Complete parts (a) and (b) below. pat suive and system vi equations to vetemme when are prom vi loss noin de show will be equal ivi talli veliu What is the amount of that profit or loss? The profit or loss will be equal for each venue after about 43.7 weeks. (Round to one decimal place as needed.) The amount of profit or loss is $ 615100 (Round to the nearest dollar as needed.) (b) Discuss which venue is favorable for the show. Choose the correct answer below. A. The Broadway show is the favorable venue because, according to the equation, the overall profit will be greater than the off Broadway venue. B. Neither venue is favorable because, according to the equation, both venues will lose money. C. The off Broadway show is the favorable venue because, according to the equation, it will take fewer weeks to make a profit than the Broadway venue will. D. There is not enough information to answer the question. The producer should gather data from the first few weeks of ticket sales at either venue before deciding which venue is favorable.
When a popular playwright opened a new play, he had to decide whether to open the show on Broadway or off Broadway. For example, he decided to open his last play off Broadway. From information provided from his produ the following equations were developed: 43,800x-y = 1,299,000 23,000x-y = 390,000 where x represents the number of weeks that the show ran and y represents the profit or loss from the show. The equation is for Broadway, and the second equation is for off Broadway. Complete parts (a) and (b) below. pat suive and system vi equations to vetemme when are prom vi loss noin de show will be equal ivi talli veliu What is the amount of that profit or loss? The profit or loss will be equal for each venue after about 43.7 weeks. (Round to one decimal place as needed.) The amount of profit or loss is $ 615100 (Round to the nearest dollar as needed.) (b) Discuss which venue is favorable for the show. Choose the correct answer below. A. The Broadway show is the favorable venue because, according to the equation, the overall profit will be greater than the off Broadway venue. B. Neither venue is favorable because, according to the equation, both venues will lose money. C. The off Broadway show is the favorable venue because, according to the equation, it will take fewer weeks to make a profit than the Broadway venue will. D. There is not enough information to answer the question. The producer should gather data from the first few weeks of ticket sales at either venue before deciding which venue is favorable.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Transcribed Image Text:When a popular playwright opened a new play, he had to decide whether to open the show on Broadway or off
Broadway. For example, he decided to open his last play off Broadway. From information provided from his producer
the following equations were developed:
1,299,000
43,800x-y
23,000x-y = 390,000
where x represents the number of weeks that the show ran and y represents the profit or loss from the show. The firs
equation is for Broadway, and the second equation is for off Broadway. Complete parts (a) and (b) below.
=
las sive and system of equals to determine when the prom vi loss from are show will be equal ivi caur venue.
What is the amount of that profit or loss?
The profit or loss will be equal for each venue after about 43.7 weeks.
(Round to one decimal place as needed.)
The amount of profit or loss is $ 615100
(Round to the nearest dollar as needed.)
(b) Discuss which venue is favorable for the show. Choose the correct answer below.
A. The Broadway show is the favorable venue because, according to the equation, the overall profit will be
greater than the off Broadway venue.
B. Neither venue is favorable because, according to the equation, both venues will lose money.
C. The off Broadway show is the favorable venue because, according to the equation, it will take fewer
weeks to make a profit than the Broadway venue will.
D. There is not enough information to answer the question. The producer should gather data from the first
few weeks of ticket sales at either venue before deciding which venue is favorable.
Expert Solution
Step 1
a) We are given the equations determining profit for two scenarios - On broadway and Off broadway,
The equations given are:
On Broadway: 43800x - y = 1299000
Off Broadway 23000x - y = 390000
where x represents weeks, and y represents profit or loss
Let us modify the equations so that they define the variable 'y'. We can do this by rearranging the terms on both sides as below:
On Broadway: y = 43800x -1299000
Off Broadway: y = 23000x - 390000
To determine the point at which both shows make equal money, we need to subtract one equation from the other, which will cancel out y.
Solving this we get, 0 = 43800x -1299000 - 23000x + 390000
20800x = 909000
x=43.7 weeks
To find amount of profit, i.e., y we can substitute it into any equation:
y = 43800 * (43.7) - 1299000
y = $615060
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