MEMO 3

From Angus Young of AC/DC to ICT department

We now need to make some final pricing decisions about the concert - can you please help?

When you make a change to the model DO NOT change it back. Go onto the next question

1. If we put the performance on for three nights, what possible prices do we need to
charge for tickets on each night in order to make a total profit of £3,000,000? (or as
close as possible to this figure). I am assuming that all seats are sold on each
night.

Answer: £50

2. The security firm have decided that they need to double their basic rate of £10,000 to
£20,000. How much will we need to pay them in total over 3 nights?

Answer: £60,000

3. At the moment our income from the sale of programmes is £41,650. How much
income would we make from the programmes if we increased the price of each one
by 10%? (Use a formula with a % calculation in the programme price cells)

Answer: £45815

4. The fire safety officer has been round and issued a safety certificate as long as we
only have 15,000 seats in the hall. What possible prices do we need to charge for
tickets on each night in order to make our target total profit of £3,000,000? (or as
close as possible to this figure).

Answer: £70

Signed: Angus Young

Lead Guitarist of AC/DC