Business (18) - Task F - The Rights & Ticket Prices

As I had done the research into printing, venue hire and microphones, Lewis did some research into the hiring the rights to put on a musical. The rights include the scripts, the score and to actually put the production on. Lewis worked out an average cost for the rights of a musical by looking at the following website: www.josef-weinberger.com

The cost for the rights would be as follows:

• £310 for scripts
• £195 for musical scores
• (Option A) £100 per performance OR (Option B) 16% of total ticket sales

Tickets:
Assuming we sold all of the tickets for every show, then we would have sold 1200 tickets. We will sell our tickets for £5 each, and £2 for concessions. If we said that concessions take up 60% of the audience, then we would sell 720 concessions and 480 standard tickets. The overall concessions tickets prices would be (720 x £2) £1440, whilst the standard tickets would be (480 x £5) £2400. The overall ticket sales would be (£1440 + £2400) £3840.

Option A:

• Script prices and score prices (310 + 195) = £505
• Four performances (4 x 100) = £400
• Overall price for Option A Fee (505 +400) = £905

Option B:

• Script prices and score prices (310 +195) = £505
• 16% of ticket sales (16% of 3840) = £614.4
• Overall price for Option B Fee (505 + 614.4) = £1119.40

Conclusion:
Unfortunately, we have to go for the option which costs more, so we have to go for Option B, costing us an additional (1119.4 - 905) £169.40.