Requirement 4: Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues needed to earn the $6,000 profit calculated in requirement 3 above? Show calculations to support your answer.
The case states that attendance the first day of the past rodeo was 1,663 people. The total attendance for the three days (add up the three amounts) was 3,330 people. The case also states the prior ticket sales as $28,971. Calculate the past rodeo’s average ticket cost.
Using the average ticket cost and the required ticket sales from requirement 3 at the $6,000 profit level, determine if the area seating is enough to support the number of tickets/attendance over the three days of the rodeo.