Broadway Case

EXHIBIT 1A BABY WALLY SEATING CAPACITY AND TICKET REVENUE Week of March 1-7, 1982 Assumes TKTS are best seats, sold at 50% discount - Standing Room Only EXHIBIT 1B BABY WALLY SEATING CAPACITY AND TICKET REVENUE Week of March 8-14, 1982 Assumes TKTS are best seats, sold at 50% discount - Standing Room Only EXHIBIT II BABY WALLY Estimation of Weekly Net Profits Two Weeks Ending 3/14/82 Less: Theatre Owner Percentage: 33,500 EXHIBIT III BABY WALLY Total Profits and Per Cent Return to Investors Baby Wally averaged $128,250 in weekly profits for the two weeks ending 3/14/82, at 82% of house capacity. For total profits over the life of the production, an average capacity of 85% is assumed. EXHIBIT IV BABY WALLY Weekly Break-Even Analysis Fixed Expenses: Variable Expenses: Total Revenues to Break-Even: At this level, all fixed and variable expenses would be covered, but no profits would be generated for the owners. Without discounting beyond the current level, house capacity would fall to 45%, and the production would probably close. EXHIBIT V BABY WALLY Target Markets Projected Audience Traditionalists: Elitist segment. Best educated, most affluent. Prefer drama and serious theatre. Cost conscious -- most frequent users of discount tickets. Impromptu attendance. Attend many cultural events, not just theatre. Theatre Enthusiasts: Below average education and income. Very interested in theatre, especially musicals. Broadway is their main cultural interest, their most enjoyable night out. Well informed about shows, attend many and often. Use discounts; little advance planning for any one show. Entertainment Seekers: Older segment. Least educated, but above average income. Special occasion usage, usually with friends. Prefer musicals and comedies. Planned attendance; did not usually use discounts. Dispassionate Theatergoers: Youngest segment. Well educated, with...