Question

Preliminary plans are under way for the construction of a new stadium for a major league baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $300,000 each. The fixed construction cost for the upper-deck area is estimated to be $4,575,000, with a variable cost of $150,000 for each box constructed.

Preliminary plans are under way for the construction of a new stadium for major leaque baseball team. City officials have questioned the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may buy the boxes for $300,000 each. The fixed construction cost for variable cost of $150,000 for each box constructed. the upper-deck area is estimated to be $4,575,000, with a. What is the breakeven point for the number of luxury boxes in the new stadium? Round your answer to the nearest whole number. Breakeven point luxury boxes b. Preliminary drawings for the stadium show that space available for the construction of up to 49 luxury boxes. Promoters indicate that buyers are available and that all 49 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? In order to maximize profits, the recommendation is to What profit is anticipated? Round your answer not build any luxury corporate boxes build 29 luxury corporate boxes Profit $ build 39 luxury corporate boxes build 49 luxury corporate boxes

Answer 1

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