Math help please...

[J.A.K.]

In my business, I have taken on a limited partnership to obtain new items. We will be splitting the revenue from these new items 50-50, while I keep 100% of revenue from all existing items. I'll try to keep it simple:

1. We are providing 5 items for a school carnival. Items A,B,and C I own outright, and items D and E I split 50-50.
The charge for using these items will be a pay-one-price armband for $12.00. The children get unlimited use of all items for the duration of the event. So, at the end of the day I will owe my partner 50% of 2/5 of the total armband sales, right? Now although items D,E are inherently worth more than say items A,C doesn't our pay-one-price structure negate this? For example: 10 kids buy armbands for $120 total dollars. It doesn't matter that they use items D,E 1000 times and items A,B,C 500 times since no particular item is generating any extra revenue. Is this thinking correct?

2. Same carnival but instead of armbands, we are selling individual tickets. The breakdown is :
$1-1tx
$5-6tx
$10-13tx
$20-28tx

Is there a way to determine an average ticket price (other than 4 different color tx) so at the end of the day when we count all the tx for items D,E it will be correct? Or must we know how many of each price group was sold?

Thanks!

[sweetjazz]

1. This is not a math problem, but merely a judgment call. I personally think that you should negotiate the deal the way you don't want to do (as it is more unfavorable to you), as you should account for D and E being more valuable. In other words, the $12 for the use of the items does not mean that each person is really paying $2.40 for unlimited of each specific item. If it is clear that D and E are drawing more people than A through C, you should find someway to compensate your partner appropriately.

2. The way to determine average ticket price is to add up how much money you take in total and divide it by the total number of tickets sold. It's that simple.

[chrisnice]

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Is there a way to determine an average ticket price (other than 4 different color tx) so at the end of the day when we count all the tx for items D,E it will be correct? Or must we know how many of each price group was sold?

Thanks!

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Its a little complicated but you could take total $ sales and divide by the number of tickets sold.

[sweetjazz]

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Is there a way to determine an average ticket price (other than 4 different color tx) so at the end of the day when we count all the tx for items D,E it will be correct? Or must we know how many of each price group was sold?

Thanks!

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Its a little complicated but you could take total $ sales and divide by the number of tickets sold.

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How exactly is that complicated at all?

[J.A.K.]

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Is there a way to determine an average ticket price (other than 4 different color tx) so at the end of the day when we count all the tx for items D,E it will be correct? Or must we know how many of each price group was sold?

Thanks!

[/ QUOTE ]

Its a little complicated but you could take total $ sales and divide by the number of tickets sold.

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Sorry, I was trying to seperate the two for clarity. In actuality the armbands are sold in conjunction with the tx. Therefore my question should have been: is there a way to determine an average tx price simply based on the structure of tx sales?