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The Basic Problem A garage band wants to hold a concert. The expected ticket sales is 2,000. The average expenditure on concessions is $15 per patron. Tickets sell for $12 each. The band’s profit is 80% of the ticket sales plus 75% of the concession sales, minus a fixed cost of $15,000. Assume for now that all of the input variable are known with certainty and that the concert venue has sufficient capacity to hold 2500 people. However, for your first Base Model, let’s IGNORE the concert venue capacity constraint. In other words, pretend that the venue can hold an unlimited number of people. Your goal is to build a spreadsheet model that will allow you to do things like find the breakeven level of ticket sales and do some sensitivity analysis to some of the key inputs. However, we are going to do this one step at a time, starting with an influence diagram.
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Angela Fox and Zooey Caulfield were food and nutrition majors at State University, as well as close friends and roommates. Upon graduation Angela and Zooey decided to open a French restaurant in Erehw on, the small town where the university was locat..
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