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Who keeps the money from a stadium concert

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A promoter puts on a stadium concert in Mumbai (all figures illustrative, in USD). It sells 50,000 tickets at an average of USD 120. It pays the artist USD 4.5 million, the venue and production (stage, sound, security, staff) USD 1.2 million, and marketing USD 150,000. What does the promoter make from tickets? It also earns USD 300,000 from sponsors and USD 400,000 of net profit on food, drink and merchandise. What is its total profit and margin on the ticket sales?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Promoter profit = ticket sales minus artist, venue, production and marketing, plus sponsorship and other income
- Ticket sales = tickets x average price
- Show costs = artist fee + venue and production + marketing
- Other income = sponsorship + net food, drink and merchandise

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Ticket sales
What a strong candidate does: 50,000 tickets at USD 120.
Ticket sales (USD): 50,000 × 120 = 6,000,000
Step 2: Profit from tickets
What a strong candidate does: Ticket sales minus the artist, the venue and production, and marketing.
Ticket profit (USD): 6,000,000 - 4,500,000 - 1,200,000 - 150,000 = 150,000
Step 3: Ticket margin
What a strong candidate does: Ticket profit over ticket sales.
Ticket margin (fraction): 150,000 ÷ 6,000,000 = 0.025
Step 4: Total profit
What a strong candidate does: Add sponsorship and net food, drink and merchandise.
Total profit (USD): 150,000 + 300,000 + 400,000 = 850,000
Step 5: Total margin on ticket sales
What a strong candidate does: Total profit over ticket sales.
Total margin (fraction): 850,000 ÷ 6,000,000 = 0.1417

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The promoter should judge the show on all its income streams, because tickets alone leave only USD 150,000, a 2.5 percent margin, while sponsorship and food, drink and merchandise lift profit to USD 850,000. First, the artist takes USD 4.5 million of the USD 6 million, so ticket profit is very sensitive to selling the last seats. Second, the other streams are where the promoter has control. The risk is unsold tickets: at 45,000 tickets, ticket sales fall by USD 600,000 and the ticket profit turns into a loss. As a next step, test ticket prices by section and pre-sell hospitality.

Risks a strong answer names: Weather, cancellation or a star falling ill; Currency moves when the artist is paid in dollars and tickets are sold in rupees.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.