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Real-Life Activities

Real-Life Math

You've just booked a tour for a jazz quartet you represent. The tour will consist of 12 cities and 15 shows. The band is excited about getting more exposure. You're pleased this tour is working out. You'd be a lot happier, though, if you knew how much money it might make for your agency.

The revenues for the tour will be approximately $12,050. Because all the tour dates are in the U.S., travel costs will be lower than if the performances were international. You've estimated travel costs to be about $4,500. Promotional costs will run you about $800 for posters and notices.

You commission rate is usually 20 percent, but in this instance your company is willing to accept as little as 15 percent in order to promote the band.

If the pay for the band is $5,000, will you be going ahead with this tour or will you be renegotiating?