Chap 3: Estimation in Event Revenue...

The family entertainment "Disney On Ice - A Disney Adventure" is coming to town! The event manager is considering to change the performance venue to the Esplanade Concert Hall. He saw the following poster.

Poster produced by Hao En S1-02

The event manager intends to run 20 shows, and he is pretty sure that all the tickets will be sold out. Charging a flat rate of $180 per ticket, he is going to earn $100 for each ticket sold. He used a calculator to work out the revenue, which turned out to be $3,200,000 (exactly). He jumped in excitement.

  • Do you agree with what he has calculated?
  • Do you think he has done a good calculation? Why?
Explain your thoughts in the Comments.

26 comments:

  1. The calculation is correct, but the amount of seats is not the exact, so the amount of money earned will not be exact too.

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  2. I do not think so as he had not include the payment needed to pay for the concert hall.If the concert hall rental for 20 shows was $990,000,he will only earn 2,210,00.Thus losing about a million dollars.

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  3. No. no. The numbers may not be the exact number and could be a estimated figure.

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  4. I do not agree with the event manager's calculation. As Hao En's infomation might also be false.

    If we were to say that Hao En's infomation was correct.
    The event manager would not made good calculation as
    S$1600 x S$2000 = S$3 200 000
    but he said that he intend to run 20 shows and S$3 200 000 is only the profit of him earning for 1 show. So the correct calculation should be
    S$3 200 000 x 20 = S$64 000 000

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  5. Yes. I agree with him. He worked the total profit out instead of estimating the total proft.

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  6. NO,
    No,
    The seats available are not exact. They might be rounded off.

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  8. Yes it is correct. 20 shows with a income of $100 every ticket, with around 1600 ticket to be sold per show is, 20*100*1600=$3200000

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  9. No. I do not agree with the event manager as the number of seats available cannot be exact. It could be more or less than the number of seats.No, I do not think that what he has done is a good calculation as it is not the exact value.

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  10. No i do not agree with him. He might be pretty sure that it might sold out but it is not confirmed yet

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  12. Yes I have agreed with his calculation.

    I do not agree with his answer as he only did a 2sf estimation.

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  13. Yes, the calculation is correct-if the seat number is an exact figure,not an approximate figure.

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  14. No i do not think so. The number of seats are too exact. So it looks as if it is estimated. If it is estimated, he might either earn more or earn less.

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  16. No, the available seats are not exact, they are just estimated figures

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  17. I agree with the event manager because he calculated the profit or gain he will get and not the total cost.

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  18. no, he need to pay for the rental cost for the theatre too

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  19. Yes I agree with him because the sum of 20 x 1600 x 100 which equals to 3200000 so his calculation is good.

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  20. Yes. I think he had done a good calculation as it is not estimated but the tickets might not be all sold out.

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  21. Yes, the event manager calculated correctly. The seater theater is a distraction and is not included showing the 20 shows because it moved to the concert hall. As he is going to earn $100 for each ticket and all the tickets are definitely sold out, there are also 1,600 seats so it is $100 multiplied by 1,600=$160,000
    After that, he is going to run 20 shows so $160,000 multiplied by 20 equals $3,200,000.
    He has done a good calculation.

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  22. 1)No. 2)No. The number of seats should not be exact as it should be estimated.

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  23. No.
    The number of tickets he have sold is 32000 ($3,200,000/$100=32000).

    The number of audiences in a show is 1600 (32000/20=1600).

    However, the seating capacity of the seater concert hall and the seater theater given in the poster is not an exact figure, if the seating capacity of the seater concert hall and the seater theater is less than the number of audiences in a show, there would be some audiences with no seats and thus, the calculation is not possible.

    The event manager also never considered the money needed to use the seater convert hall and the seater theater for the concert. There are also many, many other things that requires the company to pay which the event manager never considered.

    - Christopher Nah

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  24. WOH WOH WOH this is obviously wrong. The seats are too expensive and thus only approximately half of the seats will be filled up only.

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  25. I agree with him because:
    if...
    Revenue=$3200000
    1 ticket=$180
    =$100(Revenue)+$80
    number of tickets(1 show)=1600
    number of tickets(20 shows)=1600x20
    =32000
    Total Revenue=>32000x$100
    =$3,200,000
    Final Answer:$3,200,000

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  26. 1)yes,i agree with his calculation.
    2)no.

    the number of seats were estimated so the amount of money he earned will not be exact as well.

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