A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500 each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $6 at the concession stand. Attendance averages 100 people at each home game.

Question

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lucic lucic · Answer 1 · 2020-04-02T22:20:30+02:00

Answer:

1. (a). $1300 (b). $7800

2. $9000

3. Loss = $1200

4. 116 tickets

Explanation:

1.How much does the team earn in revenue for each game and for each season

Revenue for each game;

Attendance =100

Price per ticket =$10

Revenue from sell of tickets = 100*$10=$1000

Amount spent at concession stand=100*$6 =$600 / 2 = $300 (The team splits the concessions 50/50 with the city )

Total revenue per game = $1000+$300 = $1300

Revenue in one session will be : $1300 * 6 =$7800 (6 home games in three months)

2.what is their total cost each season

Monthly costs incurred by the team ;

$500+$2500 =$3000

A session has 3 months, thus cost in a season is; $3000*3 =$9000

3. How much profit do they finish the season with?

Profit/loss = Revenue - costs

Revenue per season =$7800

Cost per season = $9000

In a session the team suffers a loss of $9000-$7800 =$1200

4.How many tickets does the team need to sell each game to break even?

For a break even per game, the team must earn more profits than the cost per game thus;

Finding the cost per game in a month;

$3000/2 =$1500

The tickets needed to be sold to break even per game will be:

$1500=10x + 3 x -----where x is the number of tickets sold

$1500 = 13x

1500/13 = x

115.4 = x

The team needs to sell 116 tickets to break-even.