Real-Life Math -- Solution
You need to determine if sending this group on tour is going to be worth your while, financially speaking. Will your share be over 15 percent of the total? After travel costs and promotional costs, you'll be left with $6,750:
$12,050 - $800 - $4,500 = $6,750
Subtract the musicians' pay and you're left with $1,750.
To figure out if you've come anywhere near your final offer of 15 percent, you need to determine what 15 percent of the total will be:
$12,050 x 0.15 = $1,807.50
$1,807.50 - 1,750 = $57.50
Your share comes up just short of your final offer of 15 percent. You decide to meet with the musicians and renegotiate. You'd like to let the $57 slide, but your management company needs the money as much as the jazz combo!
Harold Norris is an arts manager. He says he uses math every day in his work to calculate profits and expenses. He says anybody interested in this career should be comfortable with numbers.