Flight (To and From) Cost per person Number of People Total Cost

Heathrow (LHR) to Sydney (SYD) $5,788 4 $23,152

Canberra (CBR) to Hobart (HBA) $205 5 $1,025
Hobart (HBA) to Melbourne (MEL) $133 5 $665
Adelaide (ADL) to Perth (PER) $205 5 $1,025
Perth (PER) to Ayers Rock (AYQ) $539 5 $2,695
Ayers Rock (AYQ) to Cairns (CNS) $619 5 $3,095
Cairns (CNS) to Brisbane (BNE) $190 5 $950
Sydney (SYD) to Heathrow (LHR) $6,934 4 $27,736
Total Cost $60,343
Airfares
Hotel Location Rooms Star rating Cost per night for 5 people Night/s Total
Meriton Serviced Apartments Bondi Junction, Sydney 2 5 $426 1 $426
Brighton Hotel motel Brighton, Hobart 2 4 $220 1 $220
Quality Inn Toorak Manor South Yarra, Melbourne 2 4 $230 1 $230
Adelaide Central YHA CBD, Adelaide 2 4 $183 2 $366
Alice On Todd Apartments Alice Springs 2 4 $531 1 $531
Cairns New Chalon Woree, Cairns 2 4 $288 2 $576
Central West End Apartments South Brisbane, Brisbane 2 4 $298 1 $298
Mecure Charlestown Charlestown, Newcastle 2 4 $248 1 $248
Dlux Hostel Potts Point, Sydney 2 4 $220 1 $220
Total Cost $3,115
Accomodation
Activity Location Cost Per Person Number of people Total Cost
Luna Park Sydney $40 5 $200
Hot Air Ballooning Melbourne $290 5 $1,450
Jet Boat Ride Perth $10 5 $50
Uluru Tour Ayers Rock $158 5 $790
Great Barrier Reef Cairns $229.60 5 $1,148
Horse Riding Newcastle $110 5 $550
Total Cost $4,188
Activities
Destination Hire cost per car Number of cars Total
Sydney to Canberra $273.63 2 $547.26
Hobart $87.14 2 $174.28
Melbourne to Adelaide $947.75 2 $1,895.50
Perth $126.35 2 $252.70
Ayer's Rock $106.14 2 $212.28
Cairns $209.99 2 $419.98
Brisbane to Sydney $728.13 2 $1,456.26
Total Cost $4,958.26
Car Hire
Tickets sold per venue Cost per Ticket Number of venues Total income
600 $60 8 $288,000
Item Item Sold Profit Venues Total profit
T-shirt 100 $18 8 $14,400
CD 75 $15 8 $9,000
Item Items sold Buying Price Selling price Profit Number of Venues Total profits
Poster 120 $15 $20 $5 8 $4,800
Hat 50 $10 $14 $4 8 $1,600
Bag 40 $13 $17 $4 8 $1,120
Total Income $311,400
Income
Manager's wages $6,000
Insurance $10,000
Equipment transport $8,000
Road Crew $8,000
Band Allowance $8,000
Miscellaneous expenses $1,000
Venues and promoters $72,000
Accomodation $3,115
Activites $4,188
Airfares $60,343
Meal $7,000
Car hire $4,958.26
Total Expeses $192,604
Expenses
Manager's wages
Insurance
Equipment transport
Road Crew
Band Allowance
Miscellaneous expenses
Venues and promoters
Accomodation
Activites
Airfares
Accomodation $3,115
Activity $4,188
Airfares $60,343
Expenses $124,958.26
Income $311,400
Total Profit $118,795.74
Summary
Summary
Manager's wages
Insurance
Equipment transport
Road Crew
Band Allowance
Miscellaneous expenses
Venues and promoters
Accomodation
Activites
Airfares
Meal
Car hire
Questions
1. How many tickets, CDs, T-shirts and other merchandise items need to be sold to cover expenses and earn the band a $50,000 profit?
2. What if ticket sales are slow and the band spends an extra $12,000 on promotion? How many extra tickets at each venue will need to be sold?
3. What if the bands percentage of ticket takings was reduced from 75% to 65%? How would this affect the number of ticket sales needed to cover expenses or the bands profit?
4. Calculate the average daily cost for the tour. How would profits be affected if there was an unexpected 2 day delay travelling to Uluru?
Answers
1. 0 because I already have $50 000 profit
2 75% of tickets is $60*3/4=45
12000/45/8=33.33 therefore around 33 extra tickets would need to be sold at each venue.
3. The number of tickets $60*65% = $39
$12000/$39/8 = 38.46
There would be no need to have an increase of ticket sales but the band's profit will go down.
4. 14 days = $192604
Average is $192604/14
$192604/14 = $13,757.42857
Average daily cost for the tour would be around $13,757.
In this case, the band is going to miss seeing Uluru and go straight to Cairns from Perth.
So from Perth to Cairns it is $615.29 per person therefore the total cost would be $3076.45.
There would be a decrease in profit of at least $3076.45 because the bookings from Cairns would remain the same.
3. What if the bands percentage of ticket takings was reduced from 75% to 65%? How would this affect the number of ticket sales needed to cover expenses or the bands profit?