1. ROTHMUELLER MUSEUM
Soman Nahata
Harini V.
Ankit Jangalwa
Vishwajeet Narayan
Gandharv Raj Sethi

2. Data Given
Revenue (9000x$12) 108000
Less.
Lease of photos 80000
Packing and transportation 4000
Event Insurance 2000
Alice Morgan's salary 12000
William Jacob's salary 8000
Guard Service 9000
Installation cost 1000
Advertising 5000
Exhibition Printed programs 2000
Total Cost 123000
Profit (Loss) -15000

3.  The figure of -15000 indicates that the
museum is making a loss and the exhibition is
not profitable to the museum.
 However lets re-examine the situation.

4.  By referring to the additional information
given we obtain more sources of revenue.
 It is stated that without the exhibition only
1/5 of the individuals would attend the
museum.
 Hence there is and additional revenue
generation of 4/5(9000)*$5 = 36000

5.  The revised profit figure is now 21000
 Also mentioned is that 20 % of the individuals
make an average purchase of 7 dollars at the
store.
 Addition to profit is 5% per dollar sales.

6.  The profit addition is =0.2*9000*0.8*7*0.05
= 504
 Hence the final profit is:
 21000 + 504= 21504

7.  To Break even:
Total Revenue = Total Cost
Let ‘x’ be the total no. of people (including those 1800
visitors) attending exhibition for reaching breakeven
Total Revenue from exhibition entry fees= x*$12
Total additional revenue from museum entry because of
exhibition= (x-1800)*5
Additional revenue from purchases= (x-1800)*0.2*7
So (x*12) + (x-1800)*5 + (x-1800)*0.2*7 = 123000 + (x-
1800)*0.2*7*0.95 {as profit from purchase is 5% per dollar)
Solving the above equation:
x = 7741 visitors