You are thinking of opening a Broadway play, I love You, You're Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for 100 weeks. It costs $1000 to open the theater each night. Tickets sell for $50.00, and you can earn an average of $1.50 profit per ticket holder from concessions. The theater holds 800, and you expect 80% of the seats to be full.;a. Given your other assumptions, how many weeks will the play have to run for you to earn a 100% return on the play's development cost?;b. Given your other assumptions, how does an increase in the percentage of seats full affect profit?;c. Given your other assumptions, determine how a joint change in the average ticket price and number of weeks the play runs influence profit.
Paper#18103 | Written in 18-Jul-2015Price : $22