The Pritzker Music Pavilion in downtown Chicago is atechnologically sophisticated and uniquely designed performing artsvenue that hosts live concerts attended by over half a millionpatrons a year. A group of local organizers, led by a prominentlocal businesswoman, would like to use the pavilion for a concertto benefit Ceres, a non-profit, national network of investors andenvironmental organizations working with companies and investors toaddress sustainability challenges such as global climate change. Ifthe pavilion management agrees to host the concert, the organizerswill donate all profits to Ceres (or absorb any losses).

Based on the following revenue and cost information, theorganizers would like answers to several questions.

There are three sources of revenue for the concert:

1. Tickets will be sold for $16.00 each.
2. A large multinational corporation headquartered in Chicago willdonate $2.00 per ticket sold.
3. Each concert attendee is expected to spend an average of $19.00for parking, food, and merchandise.

On the expense side, there are also three components:

1. A popular national group has agreed to perform at the concert.Normally, the group demands a significant fixed fee to perform, butto reduce the risk for the organizers, the group has agreed toperform for $5.50 per ticket sold.
2. The organizers will pay several companies to operate theparking, food, and merchandise concessions. They will pay $23,000plus 13% of all parking, food, and merchandise revenue.
3. The organizers will pay the pavilion $90,000 plus $6.00 perticket sold to cover its operating expenses (production,maintenance, advertising, etc.).

REQUIRED [ROUND YOUR CM ANSWER TO THE NEARESTCENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEARESTDOLLAR.]

Part A (8 tries; 8 points)
1. What is the estimated contribution margin per ticket sold forthe benefit concert?    

2. What are the estimated total fixed costs for the benefitconcert?    

Tries 0/8

Part B (8 tries; 8 points)
3. What is the estimated profit from the benefit concert if 9,000tickets are sold?    

4. How many tickets must be sold in order for concert profit to be$90,000?    

5. Assuming a tax rate of 31% on profits from the concert, whatmust dollar ticket sales be in order for after-tax concert profitsto be $90,000?    

Tries 0/8

Part C (4 tries; 4 points)
6. Assume that the organizers can negotiate the fixed portion ofthe pavilion's operating expenses. If the organizers expect to sell9,000 tickets, how much operating fixed costs can they afford topay and still earn a profit of $90,000 (ignoretaxes)?