Question

Can someone please help me with this? Thanks!

05 Question (5 points) e See page 246 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 $200 each month for the three-month season. The team pays the players and manager a total of $1,500 each month. The team charges $10 for each ticket, and the average customer spends $6 at the concession stand. Attendance averages 50 people at each home game. 1st attempt Part 1 (4 points) See Hint The team earns an average of $ in revenue for each game and $ of revenue each season. With total costs of $ each season, the team finishes the season with $ of profit.

Answer 1

Team earns $ 10 for each ticket and 50 people attend a game and spend $6 on concession stand but due to 50/50 sharing, team receives only $6/2 = $ 3 out of this.

Thus:

Per customer revenue of tem= $10 + $3 = $13

Total revenue per game = 13 * 50 (50 is the no. of people)= $650

Total no. of matches in season = 2*3 = 6

For a season of 6 games, total revenue= 650* 6=$3900

Total cost = city charge + player & management cost

= ($200*3) + (1500*3)

= $5100

Profit = revenue- cost= 3900- 5100 = -1200 $

That means loss of 1200 $.

Thus:

The team earns $650 in revenue for each game and $3900 revenue each season. With total costs of $5100 each season, the team finishes the season with $ -1200 of profit (or loss of 1200)

For breakeven:

Cost = revenue

=> 5100 = 13*6*n

=> n = 65.4 = 66

(or 65 if 66 is not accepted)

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