Theatre Chain B currently sells 5600 adults tickets a week a

Theatre Chain B currently sells 5,600 adult’s tickets a week at a price of $8 each and another 3,600 children’s tickets at $3 each. The theater is considering adding a senior’s ticket which would be priced at $5 each. A marketing group has estimated that adding the senior’s ticket would change the weekly ticket sales to 600 senior’s, 5,300 adult’s, and 4,100 children’s tickets. What is the amount of the revenue that should be used in analyzing the addition of the senior’s ticket? Possible Answers: $2,100 $3,000 $4,500 $6,900

Solution

Revenue from Seniors tickets $ 3,000 =600*5 Add: Increase in children\'s tickets $ 1,500 =(4100-3600)*3 Less: Decrease in adult\'s tickets $ 1,500 =(5600-5300)*5 Relevent revenue from senior\'s tickets $ 3,000