This is done to generate interest in the alltel

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another 2,098 were given away as “comp” tickets. This is done to generate interest in the ALLTEL Pavilion and promote future attendance of other shows. While the full ticket revenue is not realized on comp tickets, some revenue through parking, food, and merchandise is generated and variable costs per capita are also incurred. The contribution margin for sold tickets as shown in the N-BEQsection of appendix page 1, is $37.04. The contribution margin of a comped ticket is $10.04. Comp tickets made up 25% of the total tickets distributed for the show. After calculating the contribution margin
and the fixed costs, solving for the quantity of tickets required to break even is found with a simple algebra calculation. Please see the N-BEQsection of appendix page 1.3.Fixed Fee vs Per Capita Performer ContractsEach performer that performs at the ALLTEL Pavilion is either paid a fixed fee or paid based on per capita attendance. Generally, popular performers will sell more than enough tickets for the ALLTEL Pavilion to break even. For lesser-known performers however, less tickets will be sold but fixed costs will still remain. For this reason, a breakeven analysis is particularly important for fixed-fee performers. The performers cut is the largest expense related to a show. A breakeven analysis allows the large number of the costs to be known and fixed so that strategic allocation of marketing and promotional dollars can be better allocated to help sell tickets.

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