AUDITORIUM PRICING

Fixed Prices
Zone
Demand
capacity
Seat
€ 100 € 200 € 300
Location
Zone A 5,000 20,000 10,000 7,000
Zone B 10,000 12,000 6,000 3,000
Zone C 5,000 6,000 2,000 0

The table above provides the demand at three different prices. Use it to
answer the following two questions:

1. What is the total revenue if all seats in Zone A are priced at €300, all seats
in Zone B at €200, and all seats in Zone C at €100? (Use the table below to
calculate your answer.)

Variable Prices Across Sections

Zone Sales, based on demand, number of
capacity available seats
Seat
€ 100 € 200 € 300
Location
Zone A 5,000 5,000
Zone B 10,000 6,000
Zone C 5,000 5,000
Revenue € 500,000 € 1,200,000 € 1,500,000
Total revenue € 3,200,000
2. What is the maximized revenue using multiple prices per
section? For example, Zone C could have seats prices at both
€100 and €200, Zone B could have seats priced at €100, €200,
and €300, etc. (Use the table below to calculate your answer.)

Variable Prices within Section

Zone Sales, based on demand, number of
capacity available seats
Seat
€ 100 € 200 € 300
Location
Zone A 5,000 5,000
Zone B 10,000 1,000 6,000 3,000
Zone C 5,000 3,000 2,000
Revenue € 400,000 € 1,600,000 € 2,400,000
Total revenue € 4,400,000
 Zone
Demand
Capacity
Seat
€ 100 € 200
Location
(10,000 +
Zone A 3,000 10,000
100%) 20,000
(6,000 + 100%)
Zone B 12,000 6,000
12,000
(2,000 + 200%)
Zone C 5,000 2,000
6,000
nd

€ 300

(10,000 −
30%) 7,000
(6,000 − 50%)
3,000
(2,000 −
100%)
0