To raise funds for its community activities, a Lions club is negotiating with int. carnivals to bring its midway to town for a 3 day opening. The event will be on a shopping Center lot which is to receive 10% of the gross revenue. The lions club will sell the tickets on site. Int. carnivals requires either $15000 plus 30% of revenue or $10000 plus 50% of revenue. Other towns had an average of $10 spent per customer. A) what is the break even attendance under each basis for remunerating int. carnivals? B) for each alternative, what will be the Colin's profit or loss if the attendance is I)3000 or ii) 2200?
C) how would you briefly explain the advantages and disadvantages of the two alternatives to a club member?