Parokya ni Edgar Band will perform at the Eastern Visayas State University soccer field (2,500-person capacity) on February 12, 2021 during the Foundation Day Celebration of the University. The school administration has approached the Junior Philippine Institute of Accountants (JPIA) to take charge of the said event. The university will be charging JPIA for ₱120,000 for the facilities and ₱8 for each ticket sold. The organization asks you, as a member of JPIA to determine how much to charge for each ticket. The JPIA organization wants to make a profit of ₱40 per ticket sold. You assume that 1,500 tickets will be sold. a. What is the total cost of the organization if 1,500 tickets are sold? b. What price per ticket must be charged for JPIA to earn its desired profit margin? c. Suppose that on February 12, 2021, a major typhoon hit the area, bringing in two meters height of flood. Only 500 tickets are sold because most students were going to buy their tickets at the entrance of the venue. What is the profit or loss to JPIA? d. Suppose instead that fair weather prevails and, by showtime, 2,200 concert tickets had been sold. Compute the profit or loss to the JPIA organization.
Parokya ni Edgar Band will perform at the Eastern Visayas State University soccer field (2,500-person capacity) on February 12, 2021 during the Foundation Day Celebration of the University. The school administration has approached the Junior Philippine Institute of Accountants (JPIA) to take charge of the said event. The university will be charging JPIA for ₱120,000 for the facilities and ₱8 for each ticket sold. The organization asks you, as a member of JPIA to determine how much to charge for each ticket. The JPIA organization wants to make a profit of ₱40 per ticket sold. You assume that 1,500 tickets will be sold.
a. What is the total cost of the organization if 1,500 tickets are sold?
b. What price per ticket must be charged for JPIA to earn its desired profit margin?
c. Suppose that on February 12, 2021, a major typhoon hit the area, bringing in two meters height of flood. Only 500 tickets are sold because most students were going to buy their tickets at the entrance of the venue. What is the profit or loss to JPIA?
d. Suppose instead that fair weather prevails and, by showtime, 2,200 concert tickets had been sold. Compute the profit or loss to the JPIA organization.
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