City Symphony Orchestra The City Symphony Orchestra is a branch of the Center for Performing Arts. It performs regular concerts throughout the year and has been reasonably profitable in the past. However, In recent years, concert attendance has been declining and the Orchestra is looking for ways to boost attendance. The traditional customers of the Orchestra have been the older and more affluent segment of the population that live In the suburbs. The recent boom In the high-tech sector, however, has created an affluent population that is younger and has different casual tastes.
This younger affluent group prefers to live in the city rather than commute from the suburbs. Older people concerned about crime In the downtown district do not like attending evening concerts. Increased traffic congestion also discourages them from driving into the city downtown cultural district. These are some of the main reasons why attendance has declined. To reach its traditional audience and to attract the younger audience, the Orchestra has decided to perform outdoor concerts in parks during the summer. It is in the recess of selecting Its mix of concerts for the upcoming summer.
The summer season consists of 90 concerts given once per evening. When concerts are offered outside the Symphony Hall, the home base for the Orchestra, musicians are hired and paid on a per concert or nightly basis. The Orchestra contracts with private films for services such as ticket sales, transportation of equipment, sound technicians, and security. These too are paid on a per concert or per night basis. The Orchestra has a full-time permanent staff of a musical program erector, box – office manager, administrative staff, and a director.
These administrators are on salary. Other costs include office space rental, equipment, and utilities. The Orchestra Is considering three types of concerts for the next season: a. Classical selections from Beethoven and Brahms b. More Mozart-?a selection from Mozart music c _ Contemporary Pop and Rock Selections Table 1 contains the marketing department’s projections of sales and revenue for each type of concert. Since this Is a new direction with no prior sales history. E director of the Orchestra, Sarah Bernhard, is concerned about the certainty of ticket sales. She has asked the box office manager to provide some sense of how sure he is that 141,000 tickets can be sold. She wanted to know the range of ticket sales so she could assess the risk the Orchestra faces. The box office manager has provided the following additional information.