Simon Jones has decided to run a new festival to rival Glastonbury.
He has to pay out the following costs:
£250,000 for licensing
£100,000 for insurance
£75,000 for a security fence
£15 per ticket holder for security
£50 per 100 ticket holders for postage and packing and administration costs.
In addition his outlay for bands is £750,000.
He is looking at a capacity of 25000.
Which of the following would be the most profitable price for Simon to charge assuming all the tickets would be sold?
a. £50.00
b. £60.00
c. £70.00
(10 marks)
