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Revenue from major intercollegiate sports is an important source of funds for many colleges. Most of the costs of putting on a football or basketball game may be fixed and may increase very little as the size of the crowd increases. Thus, the revenue from every extra ticket sold may be almost pure profit.

Choose a sport played at your college or university, such as football or basketball, that generates significant revenue. Talk with the business manager of your college's sports programs before answering the following question:

Estimate the ancillary revenue (parking and concessions) per ticket sold. Estimate how much profit is lost in an average game from these sources of revenue as a consequence of not having a sold-out game.

Respuesta :

The answer to this question will vary from school to school.

Managers will lease greater guide personnel, inclusive of security and vending employees, for big video games that predictably draw greater people. Those prices are variable with recognition to the quantity of anticipated attendees but are fixed with respect to the variety of those who absolutely buy tickets.

Maximum other prices are fixed with respect to both the number of expected and actual tickets sold x which includes the prices of the coaching workforce, athletic scholarships, uniforms and system, facilities, and so on.

University football programs can generate revenue in a selection of ways, along with price tag purchases, company sponsorships, endorsements, licensing costs, television contracts, alumni donations, capital campaigns, pupil athletic fees, and, for the elite few, bowl recreation fees or playoff/championship revenue.

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