Juliet's Theatre Group (JTG) Juliet and her friends would all like careers in acting. They have formed a co-operative called JTG which is based in city M. JTG is planning to hire a theatre in city M so that the co-operative members can act in a play. The theatre has 300 seats but Juliet has set a target of 200 customers to break even. This should ensure a margin of safety. City M is a large city with many theatres and music venues. Juliet estimates that they can sell 150 tickets in advance to friends, family and on the internet. Unsold tickets will be available to buy on the night of the performance. JTG is planning to perform the play at the hired theatre in city M for one night only. Financial information is shown in Table 2.1. Table 2.1: Financial information ($) Theatre hire per night (paid in advance): 600 Costume hire: 200 Printing tickets: 100 Variable costs per ticket: 2 Juliet has proposed going to different cities with the play, putting on performances for one night in each city. Arpitter is a business consultant and has offered some advice. She thinks that JTG should put on performances only in city M and has given the following reasons: • there is a suitable venue in city M • it is easier to build customer loyalty • minimal costs. Juliet disagrees. She thinks that JTG could: • build up a larger customer base by going to other cities • perform the same play in different cities so no need to rehearse other plays • access government grants for travelling acting groups.